
EIA predicts that U.S. crude oil production will rise 6.7% to an annual record 12.7M barrels/day in 2023, up from 11.9M in 2022. U.S. natural gasoline output will climb to 100Bcf/day from 97Bcf/day. U.S. coal production will increase to 601M short tons by 2023, up from 599M in this year.
The U.S. electricity consumption will rise by 2.4% in the year 2021, and 0.5% in 2023.
EIA has also increased its projections for average national gasoline prices for next year and this year. It now anticipates that 2022 pump prices will average $4.07/gal, compared to $4.05 last month. The EIA is expecting 2023 prices to average $3.59/gal, instead of $3.57 as in its previous report.
Despite pump prices dropping sharply in the last eight weeks and falling below $4.00/gal for first time since March, the higher forecast is still possible.
ETFs: (NYSEARCA:USO), (UCO), (SCO), (BNO), (DBO), (USL), (UGA), (NYSEARCA:UNG), (UGAZF), (DGAZ), (BOIL), (FCG), (KOLD), (UNL)
WTI crude oil futures fell 0.3% to $90.50/bbl Tuesday. This was due to Russia stopping crude flow along Druzhba Pipeline towards Hungary, the Czech Republic, and Slovakia. Front-month U.S. natural Gas settled +3.2% to $7.833/MMBtu on Tuesday.
The U.S. crude oil price dropped nearly 10% last week, falling to their lowest level in six months.