Crude oil, gasoline, natural gas prices going up

    Crude oil, retail gasoline and natural gas will be more expensive this year and in 2011 if a global economic recovery proceeds as expected and increases demand for the fuels, the U.S. Department of Energy predicts in its latest energy prices forecast.

The price of West Texas intermediate crude oil, one benchmark tracked by the government, averaged $62 per barrel in 2009, but is forecast to average about $80 this year and $84 in 2011, the department¡¯s Energy Information Administration reported on Tuesday, Jan. 12.

The higher prices for crude oil will correspondingly push up retail prices for regular-grade gasoline from an annual average of $2.35 per gallon in 2009 to $2.84 this year and $2.96 in 2011, the government predicted.

¡°Pump prices are likely to pass $3 per gallon at some point during the upcoming spring and summer,¡± the department¡¯s report said.

Pump prices in Dayton averaged $2.70 per gallon on Wednesday, compared with $2.74, according to the DaytonGasPrices.com Web site. That compared with $1.84 per gallon locally and $1.77 a year ago.

Diesel fuel retail prices are forecast to average $2.98 per gallon for this year and $3.14 in 2011, according to the Energy Department¡¯s forecast.

Airlines already are feeling the pinch. The airlines¡¯ collective cost per gallon of aviation fuel in November 2009 was $2.12, up from $1.98 the prior month but down from $2.55 in November 2008, the government said.

Natural gas prices are also forecast to increase. Prices at the Henry Hub, a market-watched point on the natural gas pipeline in Louisiana, are predicted to reach an annual average of $5.36 per thousand cubic feet this year, up by $1.30 from the 2009 average of $4.06. In 2011, the projected annual average will reach $6.12, the government said.

Contact this reporter at (937) 225-2242 or jnolan @DaytonDailyNews.com.