WASHINGTON - Higher U.S. gasoline prices and a slowing economy will cut into U.S. oil demand through the summer driving season much more than previously thought, the government's top energy forecasting agency said on Tuesday.

"Based on projections of weak economic growth and record high crude oil and product prices, (petroleum) consumption is projected to decline," the Energy Information Administration said in its latest monthly forecast.

Thanks to rising crude oil costs, U.S. drivers will pay an average $3.66 a gallon for gasoline this summer, up 12 cents from earlier estimates, the Energy Department's analytical arm said.

Pump prices are expected to peak at $3. ... Read full article