EIA releases updated energy sector forecast

U.S. Energy Information Administration released its Short-Term Energy Outlook on Tuesday (July 11). The following are some of the highlights from the outlook:

Benchmark North Sea Brent crude oil prices declined $4 per barrel to $46 per barrel in June, from May. Brent crude oil prices are expected to rise to $51 per barrel in 2017 and $52 per barrel in 2018. West Texas Intermediate crude oil prices should be $49 and $50 per barrel in 2017 and 2018, respectively.

U.S. regular gasoline prices fell 4 cents per gallon to $2.35 per gallon in June, from May. For the summer driving season, from April to September, regular gasoline is expected to rise 15 cents per gallon to $2.38 per gallon, from the same period last summer. Gasoline prices are projected to be $2.32 per gallon in 2017 and $2.33 per gallon in 2018.

U.S. crude oil production is expected to rise to 9.3 million barrels per day in 2017, from 8.9 million barrels per day in 2016. Production is projected to rise to 9.9 million barrels per day in 2018, which would surpass the previous record of 9.6 million barrels per day in 1970.

Dry natural gas production is expected to rise 1 billion cubic feet per day to 73.3 billion cubic feet per day in 2017, from 2016. Natural gas production should rise by 3.1 billion cubic feet per day in 2018.

Henry Hub natural gas spot prices should rise to $3.10 per million British thermal units in 2017, from $2.51 per million British thermal units in 2016, the lowest annual average price since 1999. In 2018, the price should increase to $3.40 per million British thermal units.