Energies Media
  • Magazine
    • Digital Magazine
    • Digital Magazine Archive
  • Features
  • Upstream
  • Midstream
  • Downstream
  • Renewable
    • Solar
    • Wind
    • Hydrogen
    • Nuclear
  • People
  • Events
  • Advertise
No Result
View All Result
Energies Media
No Result
View All Result

Unpredictable Energy Markets Soften Global Economic Outlook

by Alex Mills
July 14, 2022
in Alex Mills, Contributors, News, Oil and Gas News
Unpredictable energy markets soften global economic outlook
Baker Hughes

Oil Companies Cut Millions in Wrong Places as Clean Energy Reshapes Industry

Texas Consultancy Develops AI to Address Project Challenges in the U.S. Energy Sector

Volatility in global energy markets has business and government economists wondering what to expect from supply and demand for the remainder of the year and beyond.

The Energy Information Administration (EIA) at the U.S. Department of Energy released its July Short-Term Energy Outlook this week. In the first paragraph it noted the report “is subject to heightened uncertainty” about energy supplies from Russia, the U.S., and OPEC.

Also, the International Energy Agency (IEA) stated in its report this week: “Rarely has the outlook for oil markets been more uncertain. A worsening macroeconomic outlook and fears of recession are weighing on market sentiment, while there are ongoing risks on the supply side.”

Higher prices and a deteriorating economic environment have started to take their toll on oil demand, but strong power generation use and a recovery in China are providing a partial offset, IEA stated. Still, IEA projects demand to increase by 1.7 million barrels per day (b/d) in 2022, reaching 99.2 million b/d.

“World oil supply jumped by 690,000 b/d to 99.5 million b/d in June as resilient Russian production and higher output from the US and Canada more than offset steep maintenance-related losses from Kazakhstan,” according to IEA. “Production is expected to rise by 1.8 million b/d by end-year to reach 101.3 million b/d. Global oil supply is set to average 100.1 million b/d in 2022 before hitting an annual record of 101.1 million b/d in 2023.”

IEA reports refinery throughputs rose by 500,000 b/d in June, to 79.2 million b/d, 1.2 million b/d above a year ago. A number of outages and tight spare capacity outside of China meant that product supply failed to keep up with the seasonal increase in demand.

“Russian oil exports in June fell by 250,000 b/d month-to-month to 7.4 million b/d, the lowest since August 2021,” IEA reported. “This time, the decline was led by crude oil, while product shipments were relatively stable at 2.4 million b/d. Meanwhile, export revenues increased by $700 million month-to-month on higher oil prices, to $20.4 billion, 40 percent above last year’s average.”

Benchmark crude oil futures plunged by more than $20 per barrel in June as a worsening economic outlook fueled a broad market sell-off.  Brent was below $100 while WTI traded at around $96. Price premiums for physical barrels widened on rising seasonal demand for both crude and products while supply remains constrained.

EIA said U.S. regular gasoline retail prices averaged $4.11 and diesel averaged $4.91 in the first half of 2022.

Natural gas spot price at Henry Hub averaged $6.07 per million British thermal units (MMBtu) in the first half of 2022. The average price increased in each month from January through May, when it reached $8.14/MMBtu before declining to $7.70/MMBtu in June. EIA expects the Henry Hub spot price will average $5.97/MMBtu in the second half of this year.

Alex Mills is the former President of the Texas Alliance of Energy Producers.

Author Profile
Alex Mills
Contributor

Alex Mills is the former President of the Texas Alliance of Energy Producers. The Alliance is the largest state oil and gas associations in the nation with more than 3,000 members in 305 cities and 28 states.

 

Author Articles
  • Alex Mills
    https://energiesmedia.com/author/alex-mills/
    I voted #USelections2020
    November 21, 2024
    Trump’s Nominees Bring Experience to Energy Issues
  • Alex Mills
    https://energiesmedia.com/author/alex-mills/
    Energy Prices Will Be About the Same This Winter
    October 16, 2024
    Energy Prices Will Be About the Same This Winter
  • Alex Mills
    https://energiesmedia.com/author/alex-mills/
    Fed building facade against stairs in city
    September 26, 2024
    Oil Industry Activity Down as Uncertainty Increases
  • Alex Mills
    https://energiesmedia.com/author/alex-mills/
    White and Blue Line Paper
    September 19, 2024
    EIA Expects Oil and Natural Gas Prices to Rise
  • Alex Mills
    https://energiesmedia.com/author/alex-mills/
    gas tanker, ship, nature
    September 12, 2024
    Natural Gas Sets Records for Production, Consumption, Exports
  • Alex Mills
    https://energiesmedia.com/author/alex-mills/
    Federal Price Controls Didn’t Work Very Well 50 Years Ago
    August 20, 2024
    Federal Price Controls Didn’t Work Very Well 50 Years Ago
Pipeline
ADIPEC

In This Issue

Energies Media Summer 2025

ENERGIES Media (Summer 2025)


How to Deploy Next-Gen Energy Savers Without Disrupting Operations


Bringing Safety Forward in Offshore Operations


Energies Media Interactive Crossword Puzzle – Summer 2025


Moving Energy Across Space and Time


The Hidden Value in Waste Oil: A Sustainable Solution for the Future


Dewey Follett Bartlett, Jr.: Tulsa’s Champion of Independents


U.S. Oil Refineries Face Critical Capacity Test Amid Rising Demand


Letter from the Managing Editor (Summer 2025)


Maximizing Clean Energy Tax Credits Under the Inflation Reduction Act


Why Energy Companies Need a CX Revolution


Meeting Emergency Preparedness and Response Criteria


NeverNude Coveralls: A Practical Solution for Everyday Dignity


ENERGIES Cartoon (Summer 2025)

E-Fuels
ADIPEC
  • Terms
  • Privacy

© 2025 by Energies Media

No Result
View All Result
  • Magazine
    • Digital Magazine
    • Digital Magazine Archive
  • Features
  • Upstream
  • Midstream
  • Downstream
  • Renewable
    • Solar
    • Wind
    • Hydrogen
    • Nuclear
  • People
  • Events
  • Advertise

© 2025 by Energies Media