Gasoline, electricity prices expected to decline

By Alex Mills   October 11, 2019 Consumers can expect a slight decline in energy prices the remainder of this year and into 2020, according to projections from the U.S. Energy Information Administration (EIA). Gasoline and electricity prices will follow declining prices for crude and natural gas. West Texas Intermediate is expected to average $56.26 in 2019 down from $65.06 ($9.80) in 2018, and decline another $1.83 to average $54.43 in 2020, according to EIA. Natural gas, the largest generator of electricity in the U.S., will average $2.43 per million British thermal units (Btu) during the fourth quarter of this year, which is a decline from $2.56 average in September. While EIA forecasts softer commodity prices, it is expecting supplies to remain strong. U.S. crude oil production averaged 11.8 million barrels per day (b/d) in July (the most recent month for which data are available), down 0.3 million b/d from June, according to EIA. Declining production was a result of Hurricane Barry, which disrupted crude oil production in the Gulf of Mexico. The slowing rate of growth in tight oil production reflects relatively flat crude oil price levels and slowing growth in well-level productivity in the Lower 48 states. However, EIA expects growth to pick up in the fourth quarter as production returns in the Gulf of Mexico and pipelines in the Permian Basin come online to link production areas in West Texas and New Mexico to refining and export centers on the Gulf Coast. U.S. crude oil production will average 12.3 million b/d in 2019, up 1.3 million from the 2018 level, and will rise by 0.9 million b/d in 2020 to an annual average of 13.2 million b/d......  
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