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The closing spot price for West Texas Intermediate (WTI), the U.S. benchmark for light, sweet crude, averaged $90.44 per barrel in February ’22, up from $57.78 for the same period in ’21, according to the U.S. Energy Information Administration (EIA). February ’22 was the first month since September ’14 where WTI averaged over $90. 

WTI averaged $89.60 per barrel in early February before rising to $92.18 by the end of the month. The Russian invasion of Ukraine and subsequent sanctions levied on Russia by the U.S. and EU drove the price increase.  Several energy companies, including ExxonMobil, Shell, BP and Equinor have also announced they will halt operations in Russia and end partnerships with Russian-owned firms. The ban on Russian crude imports by the US, Canada and Britain, coupled with firms’ unease at buying Russian crude, could further impact prices. 

The price for Henry Hub natural gas increased in February ’22 due to freezing weather interrupting production at the beginning of the month. Prices averaged $4.72 per million British thermal units (MMBtu) in February, down 7.5 percent from $5.10 in February the prior year. 

In its March ’22 Short-Term Energy Outlook, the EIA forecast WTI to average $101.17 per barrel and Henry Hub natural gas spot prices to average $3.95/MMBtu in ’22. 

Prepared by Greater Houston Partnership Research Department

Patrick Jankowski, CERP
Senior Vice President, Research
713-844-3616
pjankowski@houston.org

Heath Duran
Manager, Research
713-844-3654
hduran@houston.org