Some of the key highlights of the report “Short-Term Energy Outlook” published by The U.S. Energy Information Administration are:
- Global oil inventories are expected to fall by an average of 8.5 million b/d in the second quarter of 2026 (2Q26), keeping Brent prices around $106/b in May and June. As oil production in the Middle East rises, crude oil prices are expected to fall, dropping to an average of $89/b in 4Q26 and $79/b in 2027.
- US marketed natural gas production averaged 120.2 Bcf/d in 1Q26, up 4% from 1Q25. Production is expected to keep rising through 2027, with associated natural gas output increasing as higher crude oil prices support more crude oil production.
- US electricity demand in the forecast rises 1.3% in 2026, averaging almost 4,250 billion kilowatthours and growing another 3.1% in 2027. Electricity demand growth is led by growth in the commercial sector, which is expected to outpace residential demand in 2027 for the first time on record. Industrial demand is also increasing, although at a slower pace, further contributing to overall growth.
- Residential electricity prices are expected to increase by 5% in 2026 and to continue to rise in 2027, although at a slower pace. Prices are rising across the United States, but the largest increases will likely occur in regions along the East Coast.
- The forecast for utility-scale solar generation in 2026 is 1.4% higher than in the previous STEO because of a revised estimate of the amount of solar generating capacity that was online at the beginning of this year.
Access the report here