On March 9th, the U.S. Information Agency (EIA) released the March outlook indicating future prices for fuels.
The EIA expects March and April, Brent crude oil prices to average $67 per barrel. The high price is attributed to limitations placed by OPEC members on production. In February, OPEC output averaged 24.9 barrels per day, but will increase to 27.9 barrels per day for the second half of 2021. U.S. production of liquid fuels will reach 12.0 million barrels per day in 2022.
Natural gas spot prices increased to $5.35 per million British thermal units in February. Due to extremely cold weather during the month, a record withdrawal of 150 billion cubic feet was recorded from the Texas South Central region. March inventories will be 13 percent less than the five-year average suggesting prolonged high prices.
With increased demand for power and an increase in natural gas price, coal used in the U.S. for power generation will rise to 505 million short tons in 2021. Prevailing low temperature during the first quarter of 2021 has contributed to a 2.7 percent increase in U.S. residential consumption of electricity. Power consumption was 10 percent higher in February 2021 compared to the corresponding month in 2020.
Energy-related carbon dioxide emissions will rise six percent in 2021 over 2020 attributed to increased economic activity corresponding to the restoration of normal activities following COVID restrictions.
Based on the EIA projections, forecast for fuel and power across the entire egg industry will increase from brooding chicks through ventilating pullet and layer houses, operating packing plants and delivery of eggs.