Jason Barton

Professional Information and Energy News

U.S. Expects Steady Climb in Energy Prices

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Good news and bad news, though the EIA has been wrong before. I’m still listening to friends and colleagues predicting a double-dip recession, so am not completely convinced that the domestic economy is beginning an unabated rise out of its current lows. I do have a bit more confidence in the global economy, though, so these growth projections make sense. Of course, I’ve been wrong before, too.

It’s a fascinating time to be alive.

JANUARY 13, 2010

By BRIAN BASKIN

NEW YORK—Energy prices are undergoing a long, slow march higher as major economies shake off the effects of last year’s recession, the U.S. Energy Information Administration said Tuesday in its monthly outlook.

The agency expects global gross-domestic-product growth to increase from 2.5% in 2010 to 3.7% next year, enough to prevent oil and natural-gas prices from heading back toward the multiyear lows hit in 2009. At the same time, the gradual nature of the recovery and ample inventories built up during the downturn should prevent a repeat of the spike in energy prices during 2008.

February crude futures settled down 2.1% at $80.79 a barrel on the New York Mercantile Exchange, after hitting a 15-month high above $83 a barrel last week. February gas on Tuesday was at $5.569 a million British thermal units.

“What they’re projecting this far forward is really more or less a return to normalcy,” said Tim Evans, an analyst with Citi Futures Perspective in New York.

Read the entire article here.

Written by Jason

January 13th, 2010 at 9:42 am