US energy costs to stay relatively stable in winter – EIA 

US energy costs are projected to hold steady in the coming months, supported by lower fuel prices that may cushion the effects of colder weather. In its latest report on Wednesday, the US Energy Information Administration (EIA) cut its forecast for Brent price to average $78 per barrel in 2025, down by $7 from last month’s forecast.

Meanwhile, recent tensions in the Middle East have led to a temporary surge in crude prices, raising concerns about potential supply disruptions.

In its latest Short-Term Energy Outlook, the EIA also forecasts a decline in petroleum product prices. The Mont Belvieu propane spot price is expected to average 72 cents per gallon in 2025, a 15 per cent decrease from EIA’s earlier forecast. Retail diesel and gasoline prices are projected to average $3.50 and $3.20 per gallon next year, respectively, reflecting modest reductions.

Natural gas prices, on the other hand, are on an upward trend. After a 15 per cent rise in September, the Henry Hub spot price is projected to reach $2.80 per million British thermal units (MMBtu) in the fourth quarter of 2024 and is expected to rise to an average of $3.10/MMBtu in 2025, primarily due to increased exports of liquefied natural gas.

Electricity demand is also expected to grow steadily. Residential electricity consumption is projected to increase by 3 per cent this year, with an additional 1 per cent growth anticipated in 2025. Meanwhile, growth in the commercial and industrial sectors is expected to grow by a combined 2 per cent in both 2024 and 2025.

Attribution: EIA

Subediting: Y.Yasser