By JOHN M. BIERS

Citing the drop in crude prices over the last month, the US Energy Information Administration on Tuesday slashed its price projections for 2012 oil prices and refined products.

The EIA, the independent statistical arm of the US Department of Energy, forecast that West Texas Intermediate crude prices, the US benchmark, would average $92.83/bbl in 2012, down from the $97/bbl in the June forecast.

The price projections were part of the July edition of its monthly Short-Term Energy Outlook.

The EIA also forecast lower retail gasoline and diesel prices.

The agency said retail gasoline prices would average $3.49/gal in 2012, down from $3.56 in the June estimate.

The EIA said 2012 retail diesel prices are expected to average $3.79/gal, down from $3.90/gal.

The EIA said heating oil would average $3.64/gal for 2012, down from the June estimate of $3.71/gal.

Dow Jones Newswires