ICF Consulting Forecasts Continuing High Prices and Price Spikes in Gasoline and Crude Oil

Refinery Capacity Restraints Will Keep
Transportation Fuel Prices High

WASHINGTON, D.C., May 26, 2004 - Today ICF Consulting released a report cautioning industry and consumers to prepare for high crude oil and gasoline prices throughout 2004 and for the foreseeable future. The analysis titled, Crude Oil and Petroleum Product Outlook: No End In Sight for High Prices, outlines the underlying market factors that are contributing both to recent high prices and price volatility.   Crude oil prices have increased by more than 40 percent in the last year, translating into high gasoline prices at the pump. There has been an increase of 49 cents per gallon in the nationwide average retail price for all types of gasoline, now averaging $2.06 per gallon.

Nightly Business Report TV Interview with ICF Consulting Fuels Expert on Crude Oil Supply, August 20, 2004 (requires Windows Media Player)

Zeta Rosenberg, ICF Consulting Vice President says, “In addition to high crude oil prices, we expect to see a widening gap between gasoline (and diesel) prices and the underlying crude oil prices as the United States moves into the summer driving season and the economy continues to improve. This will keep gasoline prices near or above current prices for most of 2004. Should unanticipated refinery or pipeline outages occur, we expect to see gasoline price spikes."

The main contributors to sustained high prices are increasing demand; concerns over major supply disruptions; an aging fuel transport and refinery system near capacity; and market impacts from the declining value of the dollar and from market speculators.

Learn more about ICF Consulting's fuel consulting services. For inquiries and brochures, contact us at energy@icfi.com or 1.703.934.3637.

ICF International (Nasdaq: ICFI) partners with government and commercial clients to deliver consulting services and technology solutions in the energy, environment, transportation, social programs, defense, and homeland security markets. The firm combines passion for its work with industry expertise and innovative analytics to produce compelling results throughout the entire program life cycle, from analysis and design through implementation and improvement. Since 1969, ICF has been serving government at all levels, major corporations, and multilateral institutions. More than 1,800 employees serve these clients worldwide. ICF’s Web site is http://www.icfi.com.

For Immediate Release Contact: Douglas Beck 1.703.934.3820