Rising North American oil production helped to bring down oil, gasoline and diesel prices in 2012, and prices will continue to fall in 2013-2014, according to the Energy Information Administration (EIA).

The EIA has forecast in its latest Short-Term Energy Outlook (STEO) that US benchmark crude oil West Texas Intermediate will average $93.17 per barrel this year, down from $94.12/bbl in 2012 and $94.86/bbl 2011.

“Lower prices are driven primarily by the growing supply of crude oil out of North America, specifically out of tight oil formations in Canada, the Midcontinental US, and West Texas,” Sean Hill, an analyst in the EIA’s Office of Petroleum, Natural Gas, and Biofuels Analysis told Breaking Media in an e-mail. US crude oil output rose to 6.5 million bbls per day in 2012 from 5.65 mm bbls/d in 2011, according to EIA data.

And the EIA expects an ongoing rise in crude production – to 7.4 mm bbls/d and 8.2 mm bbls/d in 2013 and 2014, respectively – to put further downward pressure on prices.”The growing supply of crude oil lessens tightness in the US market and relieves upward price pressure on WTI,” Hill said.

Lower WTI prices, combined with infrastructure investments, are carrying through to lower refiner prices for products like gasoline. “This supply growth is combined with a number of pipeline projects aimed to move the increasing supply of WTI crude oil out of the Midcontinent region into the refining centers along the Gulf Coast, which in turn helps lower gasoline, diesel, and heating oil prices.”

Refiner gasoline for resale will average $2.80 per gallon this year, down from $2.93/gallon last year, while diesel will average $3.02/gallon in 2013, down from $3.11/gallon in 2012, according to the EIA. The STEO forecast puts average WTI crude at $92.25/bbl next year, with refiner gasoline prices for resale averaging $2.71/gallon in 2014, and diesel prices averaging $2.91/gallon.