Energy Secretary says pump price may hit $3.50/gallon

By Chris Baltimore

WASHINGTON (Reuters) - Energy Secretary Sam Bodman said on Monday he is concerned that average U.S. gasoline pump prices could hit $3.50 a gallon this summer, and said he is "optimistic" that OPEC will come to the rescue of U.S. drivers.

The U.S. retail price of gasoline set a new high of $3.29 a gallon last week, and some analysts say prices could hit the $4 mark this summer as U.S. families take to the highways for vacation travel.

"I'm concerned that we could hit $3.50" per gallon, Bodman told reporters at an energy conference hosted by the Energy Information Administration. "I would like to think that we're not going to get to $4 (a gallon) but I don't make forecasts -- whatever it is, it is," Bodman said.

Soaring pump prices this summer will reduce U.S. gasoline by 85,000 barrels per day versus a year ago, according to EIA administrator Guy Caruso.

"We see a slowdown in gasoline demand," Caruso told -reporters. The EIA -- the Energy Department's statistical arm - predicts that prices could average above $3.60 a gallon this summer but will not top $4 a gallon on a nationwide basis.

The EIA will release a closely watched report on summer driving demand on Tuesday.

As oil prices climb toward their March 17 record high of $111.80 a barrel, OPEC has continued to view the market as well-supplied even as the United States -- the world's biggest oil consumer -- calls for more supplies.

"I have repeatedly asked that there be an increase," Bodman said. "They have so far chosen not to do it. I remain optimistic."