When it comes to U.S. energy prices, everything seems to be affected by demand. For instance, if there is a higher demand for oil, then the gas prices go up. Oddly enough the economic climate should have lowered the standard cost, but due to the demand in other countries, it’s a lot higher then we would expect.

In between the late seventies up to 2004, the oil consumption rose by 28.6%. This year’s increase in China was 25.8%. The demand in South Korea skyrocketed over this time by 344%. It’s hard to believe that before the turn of the 21st century, the cost for a barrel of oil was $12. Today it has risen to around $70.

You should also understand that the price which revolves around crude oil influences other fuel costs. You will find that electricity, gasoline and petroleum are the big three. It’s crazy to think that even though we’re going through a stressful time, prices are expected to rise when we reach 2010. This is because we’ll be well above our 1.25 million barrels we use each day right now.

The good news is we can expect it to drop again around the fourth quarter of 2009. Unfortunately, when the prices do go back up, we can easily expect a 40c per gallon increase in between those times. While this may true on the gas side of the things, the electricity prices are supposed to decline by 2% thanks to cheaper fossil fuel prices.

While the economy remains unstable, U.S. energy prices will be less certain. In the supply and demand chain, if fuel prices suddenly rise too high, demand will decrease as smaller businesses and companies can no longer afford production. However, while prices are on the decline it will help industry pick up again as their profits increase. The delicate balance should be maintained by both crude oil sales and industry relying on each other. Undoubtedly, as the economy picks up speed once more, crude oil prices will increase. It is only a matter of time before other fuel prices follow.

When looking at electricity consumption through the first half of 2009, there was a large decrease. In fact, according to sources the decreases fell short of 5% by only .6% in the prior year. In the second part of 2009 though, the decline has leveled out to around 2.3%. Hopefully the prices can remain low for the remainder of the year. When the economy settles though, the industry will start to receive their increase in costs once again.

The economy is mentioned constantly in relation to U.S. energy prices. As the international recession is far from over, it is expected to take at least a year for demand for fuel to rise back to the peaks of previous years. Since early 2008, prices have steadily declined in response to the sudden uncertainty in finance and industry that had led to worldwide economic recession.

Crude oil prices seem to try to preempt the economy at every step of the way. When figures were released to suggest that the U.S. economy was recovering, prices jumped up, boosting the retail price of gasoline and petroleum. However, these prices dropped again almost immediately as it was made clear that a select amount of data was not the go ahead for a stable economy. For instance, although unemployment benefit claims have declined, the levels of unemployment at still not at a healthy level. While the economy recovers, U.S. energy prices will remain volatile.

Oddly enough, the lowered demand for energy has still left the fuel stockpile prices higher then we expected. Keep in mind this is lowering the price since more is available. However, items such as natural gas have reached a new 5-year high. Thinking ahead; it will be a long while before demand supersedes the supply and prices rise. If the industry stays encouraged during this time, it will be well on its way to recovery.

For now, the U.S. energy prices have declined thanks to the lack of demand. While lower prices are great, the constant fluctuation around the world will continue this crazy roller coaster. So when 2010 rolls around expect to see an increase in gas prices, but in the meantime enjoy the lower prices.