Market Data
December 17, 2020
SMU Energy Analysis through December
Written by Brett Linton
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The Energy Information Administration’s Dec. 8 Short-Term Energy Outlook remains subject to heightened levels of uncertainty because responses to COVID-19 continue to evolve. Reduced economic activity from the pandemic has caused changes in 2020 energy demand and supply patterns and will continue to affect these patterns in the future. EIA expects high oil inventory levels and surplus production capacity to limit upward pressure on prices in 2021. U.S. crude oil production is expected to decline in 2021 as declining production rates at existing wells will outpace production from newly drilled wells. EIA expects natural gas spot prices to rise into 2021 due to rising demand, rising exports and reduced production.
