Monthly update: energy November '21, latest data

Greater Houston Partnership has issued the following press release: 

The closing spot price for West Texas Intermediate (WTI), the U.S. benchmark for light, sweet crude, averaged $80.50 per barrel in November ’21, up from $40.32 for the same period in ’20, according to the U.S. Energy Information Administration (EIA). November ’21 was the second consecutive month since October ’14 when prices averaged over $80. 

Early November WTI prices averaged $81.86 per barrel, a decline from the late-October average of $83.66. This decrease was caused by gradual increases in production from both the Organization of Petroleum Exporting Countries and its allies (collectively known as OPEC+) and the United States. But in late November, concerns about the omicron variant impacting petroleum demand and the Biden administration’s plans to release 50 million barrels from the strategic petroleum reserves, plus several other nations taking similar steps with their reserves, sent prices lower.

Natural gas prices dipped in November due to warmer-than-expected weather across much of the country. Prices averaged $5.19 per million British thermal units (MMBtu) in November, up 93.66 percent from $2.68 in November the prior year. For the 12 months ending November ’21, gas prices averaged $3.81 per MMBtu, compared to $2.01 for the same period in ’20.

 

In its latest Short-Term Energy Outlook, the EIA forecasts WTI to average $68.00 per barrel and Henry Hub natural gas spot prices to average $4.50/MMBtu in December ’21. For ’22, the EIA estimates WTI to average $66.42 per barrel and Henry Hub prices to average $3.98/MMBtu.