EIA Short-Term Energy Outlook
February 6, Release (Next Update: March 6, 2007)
- The unseasonably warm temperatures in the United States and throughout most of the northern hemisphere through early January reduced the demand for heating fuels, leading to an easing of petroleum and natural gas prices. Between mid-December 2006 and January 18, 2007, the spot price of West Texas Intermediate (WTI) crude oil fell by about $12 per barrel to a low of $50.51 per barrel. The Henry Hub natural gas spot price fell from $8.67 per thousand cubic feet (mcf) on December 1 to a low of $5.56 per mcf on January 2. The turn to colder weather in the second half of January contributed to increasing crude oil and natural gas prices. In February 2007 the WTI crude oil price is expected to average $56.00 per barrel, and the Henry Hub natural gas price is projected to average $7.35 per mcf.