You are confusing data with indices. Do not use data as indices.
temperature = 212 ; % temperature in deg F
oilapi = 41 ; % oil API
gamma = (0.00091 * temperature) - (0.0125*oilapi);
gasg = 0.65 ;
P = 100:2000; % data!
U = P; % data!
for k = 2:numel(U) % indices!
U(k) = gasg * U(k-1); %/ (18 * (10 ^ (gamma)))^1.205);
end
U