{"id":8654,"date":"2023-11-12T12:24:01","date_gmt":"2023-11-12T12:24:01","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=8654"},"modified":"2023-11-12T12:24:01","modified_gmt":"2023-11-12T12:24:01","slug":"mills-energy-prices-decline-as-supply-increases","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/8654\/","title":{"rendered":"Mills: Energy prices decline as supply increases"},"content":{"rendered":"<div class=\"entry-content\" itemprop=\"description\"><p><span class=\"pre-content-text\"><a style=\"color: #0038a8;\" href=\"https:\/\/roydadnaft.ir\/English\/\">RoydadNaft &#8211; <\/a><\/span>\u00a0The price of crude oil, natural gas, and gasoline has dropped more than 10% in recent weeks, but the U.S. Energy Information Administration (EIA) believes higher prices are in the future even though several economic indicators create questions.<\/p>\n<p class=\"gnt_ar_b_p\">West Texas Intermediate crude has declined 13% since November 2022 to average $80 per barrel so far in November compared to $92 last year, according to EIA. WTI closed at $75.65 on Wednesday.<\/p>\n<p class=\"gnt_ar_b_p\">The national average for retail gasoline has followed suit declining from $3.804 per gallon in November 2022 to $3.405 this week, which is an 11% decline, according to AAA. The average price in Texas this week was $2.871, which is 10% less than last year. Many locations across Texas reported retail gasoline prices as low as $2.61 on Wednesday.<\/p>\n<aside class=\"gnt_m gnt_x gnt_x__lbl gnt_x__al\" aria-label=\"advertisement\">\n<div id=\"ad-slot-7103-tx-wichitafalls-C1271-native-article_link-news-opinion-2\" class=\"gnt_x_sl gnt_x_al\" data-g-r=\"lazy\" data-gl-method=\"llx\">Natural gas witnessed the largest decline this year of 49%. Natural gas traded on the spot market at Henry Hub in November 2022 averaged $6.40 per million British thermal units (mmBtu) compared to $3.264 this year. Natural gas closed at $3.12 on Wednesday.<\/div>\n<\/aside>\n<p class=\"gnt_ar_b_p\">\u201cWe forecast the Brent crude oil price will increase from an average of $90 per barrel (b) in the fourth quarter of 2023 to an average of $93\/b in 2024,\u201d EIA said its Short-Term Energy Forecast released this week.<\/p>\n<aside class=\"gnt_m gnt_x gnt_x__lbl gnt_x__al\" aria-label=\"advertisement\">\n<div id=\"ad-slot-7103-tx-wichitafalls-C1271-native-article_link-news-opinion-3\" class=\"gnt_x_sl gnt_x_al\" data-g-r=\"lazy\" data-gl-method=\"llx\" data-x-c=\"2\" data-google-query-id=\"CML4sZ-5voIDFa2RgwcdZqEOjw\">\n<div id=\"google_ads_iframe_7103\/tx-wichitafalls-C1271\/native-article_link\/news\/opinion_1__container__\">\u201cAlthough the conflict between Israel and Hamas has not affected physical oil supply at this point, uncertainties surrounding the conflict and other global oil supply conditions could put upward pressure on crude oil prices in the coming months,\u201d \u00a0EIA stated.<\/div>\n<\/div>\n<\/aside>\n<p class=\"gnt_ar_b_p\">EIA believes U.S. gasoline consumption declines by 1% in 2024, which would result in the lowest per capita gasoline consumption in two decades. \u201cAn increase in remote work in the United States, improvements in the fuel efficiency of the U.S. vehicle fleet, high gasoline prices, and persistently high inflation have reduced per capita gasoline demand,\u201d EIA stated.<\/p>\n<aside id=\"gnt_atomsnc\" class=\"gnt_em gnt_em_anc\" data-g-r=\"lazy\" data-gl-method=\"loadAnc\" aria-label=\"Newsletter signup form\">\n<div class=\"label\" hidden=\"\"><\/div>\n<div class=\"container\">\n<div class=\"message\">\n<div class=\"title\">\u201cWe forecast U.S. natural gas inventories will end the winter heating season (November\u2013March) 21% above the five-year average with almost 2,000 Bcf in storage,\u201d EIA said. \u201cInventories are full because of high natural gas production and warmer-than-average winter weather, which reduces demand for space heating in the commercial and residential sectors. We forecast the Henry Hub spot price to average near $3.20 per million British thermal units (MMBtu) in November, down from a price of almost $5.50\/MMBtu a year earlier.\u201d<\/div>\n<\/div>\n<\/div>\n<\/aside>\n<p class=\"gnt_ar_b_p\">However, the record oil and natural gas production in the U.S. this year has created large inventories and EIA projects the records being set in 2023 will be broken in 2024. When supplies out pace demand prices will drop.<\/p>\n<aside class=\"gnt_m gnt_x gnt_x__lbl gnt_x__al\" aria-label=\"advertisement\">\n<div id=\"ad-slot-7103-tx-wichitafalls-C1271-native-article_link-news-opinion-4\" class=\"gnt_x_sl gnt_x_al\" data-g-r=\"lazy\" data-gl-method=\"llx\" data-x-c=\"3\" data-google-query-id=\"CJqzk6C5voIDFRISiwodN58NQQ\">\n<div id=\"google_ads_iframe_7103\/tx-wichitafalls-C1271\/native-article_link\/news\/opinion_2__container__\">Exploration and production companies will respond by reducing drilling operation. Already the drilling rig count in Texas and the U.S. is off 19% from last November.<\/div>\n<\/div>\n<\/aside>\n<p class=\"gnt_ar_b_p\"><strong><em>Alex Mills is the former President of the Texas Alliance of Energy Producers.<\/em><\/strong><\/p>\n<div class=\"post-date no-social-btn post-updated\">Updated on<time class=\"updated dt-updated\" itemprop=\"dateModified\" datetime=\"2023-11-12T12:24:01+00:00\"> 12 November 2023<\/time><\/div><\/div>","protected":false},"excerpt":{"rendered":"The price of crude oil, natural gas, and gasoline has dropped more than 10% in recent weeks, but the U.S. Energy Information Administration (EIA) believes higher prices are in the future even though several economic indicators create questions.","protected":false},"author":1,"featured_media":8655,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[47,46,36,19,16,54],"tags":[],"services":[],"class_list":["post-8654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","category-international","category-lastnews","category-news","category-oil","category-section-3"],"_links":{"self":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/posts\/8654","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/comments?post=8654"}],"version-history":[{"count":0,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/posts\/8654\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/media\/8655"}],"wp:attachment":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/media?parent=8654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/categories?post=8654"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/tags?post=8654"},{"taxonomy":"services","embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/services?post=8654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}