Environment and Energy
October 17, 2022
Energy Market Analysis Through October
Written by Brett Linton
The Energy Information Administration’s (EIA) October Short-Term Energy Outlook was released earlier this month, forecasting spot prices and production for crude oil and natural gas. Crude oil prices are forecast to remain near current levels for the remainder of this year and to slightly increase in 2023. Natural gas prices are expected to rise slighly through the remainder of the year, then ease into 2023 as production levels increase. The EIA continues to note a level of uncertainty in its forecasts, explaining, “Potential petroleum supply disruptions and slower-than-expected crude oil production growth could lead to higher oil prices, while the possibility of slower-than-forecast economic growth may contribute to lower prices.”
The EIA also released it’s Winter Fuels Outlook which forecasts household expenditures for various heating fuels. It expects spending to increase across the board this winter, due to both rising fuel costs and higher consumption versus last year. Estimated heating cost increases for natural gas are 28%, heating oil 27%, electric 10%, and propane 5%.
