A federal agency that tracks fuel prices says chances for $4 gas this summer have faded.
A report, Tuesday, by the Energy Information Administration forecast that gas prices will average $3.79 a gallon this summer, 16 cents below the previous estimates.
Falling crude oil prices are the reason for the estimates as fears of conflict in the Middle East fade and worries persist about the European debt situation.
Looking ahead, the EIA forecasts, the price at the pump to average $3.67 in 2013, a bit below the expected average price of $3.71 for this year, but 20 cents above the 2011 figure.
Based on the market value of futures and options contracts, the EIA sees a 22 percent chance of gas prices above $4.00 per gallon this summer.
Also a factor in the price outlook is the fact that U.S. total crude oil production is expected to average 6.2 million barrels per day in 2012, an increase of 500,000 barrels from last year, and the highest level since 1998. Projected U.S domestic crude oil production is forecast to increase to 6.4 million barrels a day in 2013, driven primarily by growth in onshore production outside of Alaska. North Dakota is seeing an increase in oil production. For further information, click here.
