WASHINGTON, DC – December 9, 2008 – The current global economic slowdown is now projected to be more severe and longer than in last month’s Outlook, leading to further reductions of global energy demand and additional declines in crude oil and other energy prices.
– The current global economic slowdown is now projected to be more severe and longer than in last month’s Outlook, leading to further reductions of global energy demand and additional declines in crude oil and other energy prices.
– The monthly average price of West Texas Intermediate (WTI) crude oil has fallen by more than half between July and November, reflecting the fallout from the rapid decline in world petroleum demand. The annual average WTI price is now projected to be $100 per barrel in 2008 and $51 in 2009.
– The average U.S. prices for regular-grade gasoline and diesel fuel, at $1.70 and $2.52 per gallon respectively on December 8, were both more than $2 per gallon below their highs in mid-July. With the assumption of a fragile economy throughout 2009, along with lower projected crude oil prices, annual average retail gasoline and diesel fuel prices in 2009 are projected to be $2.03 and $2.47 per gallon, respectively.
– Residential heating oil prices during this current heating season (October though March) are projected to average $2.53 per gallon, a reduction of 24 percent from the 2007-2008 heating season. Residential propane prices are projected to average $2.10 this winter, a decrease of 14 percent from last winter. Residential natural gas prices are projected to average $12.56 per thousand cubic feet (Mcf), a decrease of 1.3 percent from last winter.
– The U.S. economic recession is also contributing to lower natural gas wellhead prices. The Henry Hub natural gas spot price is projected to decline from an average of $9.17 per Mcf in 2008 to $6.25 per Mcf in 2009.
To see details of this forecast update, go to the following World Wide Web site on the Internet: