by Jbs061109 a3 — June 15, 2009—Oil prices rose for the third consecutive month in May, and prices for gasoline, diesel fuel, natural gas, electricity, and coal are also going up, according to the U.S. Department of Energy’s (DOE) Energy Information Administration (EIA).
The EIA’s “Short-Term Energy Outlook,” released June 9, blames rising oil prices on expectations for an economic recovery and future increases in oil consumption, as well as a weaker dollar.
The average U.S. price for regular-grade gasoline reached $2.62 per gallon just before the report was released, which is almost 60 cents higher than at the end of April. That led the EIA to boost its projections for gasoline prices, increasing the projected average for 2009 to $2.33 per gallon.
Other highlights of the report include:
- Total natural gas consumption is projected to decline by 2.2% percent in 2009 and then increase slightly in 2010. The Henry Hub spot price for natural gas averaged $3.96 per Mcf in May, up $0.33 per Mcf from April. Prices remain low and may decline further before rising moderately in early 2010 with an anticipated economic recovery and seasonal demand.
- Total consumption of electricity fell during the first quarter of 2009 by an estimated 3% compared to the same period last year primarily because of weak industrial consumption. Total consumption is projected to fall by 1.8% for the entire year of 2009 and then rise by 1.2% in 2010, with prices rising only moderately.
- Coal consumption in the electric power sector is projected to decline by 4.6% in 2009 due to a decline in overall electricity generation combined with projected increases from renewable sources. Industrial use is projected to decline by 33%. Prices are projected to increase to $2.16 per million Btu (MMBtu) in 2009 due to a pricing lag caused by long-term coal contracts, but the average delivered coal price is expected to decline to $1.98 per MMBtu in 2010.
