By contrast to the past, in January both oil and natural gas prices decreased, despite the ongoing armed conflicts in Europe and the Middle East. The main contributing factor to this difference is the return of the United States as the main producer of oil and natural gas, together with increased production in Brazil, Colombia, and Guyana. Meanwhile, the percentage of world production contributed by the Organization of Petroleum Exporting Countries and associates, including Russia, has decreased, from almost half in the seventies, to one third in 2020.
For instance, with 13 million barrels produced per day, last year in the US oil prices remained at around $70 per barrel, while a gallon of unleaded gasoline has fallen to less than $3.50, from almost $5.00 a year ago. The decrease in natural gas prices is more pronounced, due also to a mild winter and abundant production. In January, daily production of natural gas in the United States decreased slightly to 104 billion cubic feet, from a record of 106 billion cubic feet reached last December, while prices in February decreased 18 percent from a year earlier. Additionally, with 11 percent of its domestic production exported to European and Asian markets, the United States has become the main world exporter of liquified natural gas.
*International analyst and consultant, former Director ECLAC Washington. Commentator on economic and financial issues for CNN en Español TV and radio, UNIVISION, TELEMUNDO and other media.
