Continuing unrest in Libya as well as other North African and Middle Eastern countries has led to the highest crude oil prices since 2008.
As a result, the Department of Energy has raised its forecast for the average cost of crude oil to refiners to $105 per barrel in 2011, $14 higher than last month.

WTI crude oil spot prices averaged $88.58 per barrel in February, slightly lower than the January average, while over the same time period the estimated average cost of all crude oil to U.S. refineries increased by about $4.50 per barrel to $92.50, according to the monthly report from the DOE's Energy Information Administration. Growing volumes of Canadian crude oil imported into the United States contributed to record-high storage levels at Cushing, Okla., and a price discount for WTI compared with similar quality world crudes such as Brent crude oil.

The forecast for on-highway diesel fuel retail prices, which averaged $2.99 per gallon in 2010, is an average $3.81 per gallon in 2011, up nearly 40 cents from last month's report.

The forecast for regular-grade gasoline retail prices rose from a national average of $2.78 per gallon in 2010 to $3.56 per gallon in 2011 and $3.57 per gallon in 2012. EIA projects gasoline prices to average about $3.70 per gallon during the peak driving season (April through September) with considerable regional and local variation.

The projected monthly average regular gasoline price peaks this year at $3.75 per gallon in June.

To see details on this forecast visit www.eia.doe.gov