According to the US Energy Information Administration, U.S. Crude Oil producers are expected to continue drilling wells as long as West Texas Intermediate (WTI) Crude Oil Prices stay above $55 per barrel (EIA). In the coming months, new well output will balance declines at existing wells. The EIA issued its May Short-Term Energy Outlook on Tuesday (May 11), noting that its modelling and analysis were completed before the Colonial Pipeline was temporarily shut down on May 7 due to a cyberattack.
The EIA, on the other hand, is keeping an eye on supply and price trends as a result of the outage. The US economy is expected to grow by 6.2 percent in 2021 and 4.3 percent in 2022, according to IHS Markit forecasts. Increased energy usage has been attributed to increased economic activity and the removal of COVID-19-related constraints, and this trend is expected to continue.
The average household is forecast to spend $446 on electricity between June and August. Nalley said, “Increased electricity use will be most notable in hotels, restaurants and other businesses that faced major hurdles in 2020 due to stay-at-home orders.” In the second quarter of 2021, international benchmark Brent Crude Oil spot prices are forecast to average $65 per barrel, with $61 per barrel in the second half of 2021 and in 2022.