More: Read the Energy Information Administration’s full report.
Crude oil production cuts by oil-exporting countries are starting to take a toll on global inventories and U.S. gasoline prices, the U.S. Energy Information Administration said in its March 12 short-term energy outlook report.
The crude oil cuts by OPEC+ nations led the EIA to predict a Brent crude oil spot price average of $88 per barrel in the second quarter of this year, up $4 per barrel from its February outlook. “We expect the Brent price will average $87 [per barrel] this year,” the EIA said.
“We forecast the U.S. average retail gasoline price will average about $3.50 per gallon this year,” the outlook said. That would be up almost 20 cents per gallon on an annual basis compared with the agency’s February predictions.
Natural gas prices are heading the other direction, the forecast said.
“We expect the Henry Hub spot price to remain below $2 per million British thermal units” in the second quarter of this year, the forecast said. “The Henry Hub spot price averaged $1.72” per million BTUs in February, “a record low adjusted for inflation.”
Low prices were partially driven by reduced natural gas consumption in residential and commercial sectors over a generally mild winter, the report said.
The EIA expects utility-scale solar plants to provide 6% of U.S. electricity generation this year, up from 4% in 2023.
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