U.S. Energy Information Administration Short-Term Outlook


On Tuesday February 8th the U.S. Energy Information Administration (EIA) issued a short-term energy outlook.  The EIA expects crude oil prices to fall from $56 per barrel in the first quarter of 2021 to an average of $52 per barrel during the remainder of the year.  Gasoline prices at retail will average $2.44 per gallon up 26 cents from 2020.


The U.S. benchmark Henry Hub natural gas spot price will increase after noteworthy low prices in 2020.  Spot prices will average $2.95 per million BTU in 2021 increasing to $3.27 per million BTU in 2022.  Increased demand during winter and exports of LNG will lower gas inventory currently running above the five-year average level.


The EIA projects that renewables from wind and solar will grow rapidly through 2022 as the share of electricity generation rises to 23 percent in 2021 compared to 20 percent in 2020.