SEATTLE (Oil Monster): The latest edition of Short-Term Energy Outlook (STEO) report published by the U.S. Energy Information Administration (EIA) forecasts significant changes to energy markets through 2026.
According to the report, oil and gasoline prices are likely to fall due to oversupply. On the other hand, natural gas prices are expected to rise.
The global oil prices are predicted to fall sharply in the coming months, mainly driven by rising inventory levels. The Brent crude oil prices are predicted to fall to about $59 per barrel in the last three months of 2025. The prices are likely to fall to $50 per barrel in early 2026. Also, average prices could witness a drop to $68 and $51 in 2025 and 2026 respectively. It must be noted that the prices had averaged at $68 per barrel in August this year.
The U.S. crude oil production will peak at 13.4 million barrels per day in 2025. Also, it will drop slightly to 13.3 million barrels per day in 2026.
The Henry Hub spot price, a U.S. benchmark, averaged $2.91 per million British thermal units (MMBtu) in August 2025. The prices are forecast to rise to $3.70/MMBtu in late 2025. The average annual price for 2025 and 2026 are predicted at $3.50 and $4.30 in 2025 and 2026 respectively.
The U.S. natural gas consumption will peak to 91.4 Bcf/d in 2026, with the largest consumer being the power sector. The sector is likely to account for almost 40% of the total consumption.
