Energy Prospectus

Opening Prices:
> WTI is up $1.11 to $41.92/Bbl, and Brent is up $1.21 to $44.49/Bbl.
> Natural gas is up 2.0c to $1.661/MMBtu.

Closing Prices:
> WTI prompt month (AUG 20) was up $1.15 on the day, to settle at $41.96/Bbl.
> NG prompt month (AUG 20) was up $0.034 on the day, to settle at $1.675/MMBtu.

Oil prices rose sharply on Tuesday. Despite bad coronavirus news in the U.S., which could weaken demand, there are high hopes for economic stimulus. The European Union agreed to a historic stimulus, and the U.S. Congress appears intent on passing yet another trillion-dollar economic package. Crude prices hit four-month highs on Tuesday.

U.S. liquid fuels consumption is expected to continue to rise in the second half of 2020, but will remain below pre-pandemic levels until August 2021, according to a new forecast from the EIA.

- For the full year, the EIA sees gasoline demand averaging 8.3 mb/d, down 1 mb/d year-on-year, or a 10 percent decrease.

- Still, the EIA’s forecast is at the optimistic end of most predictions. For instance, the agency sees jet fuel demand being down only 12 percent next year. Other analysts see long-lasting scars to aviation.