Higher prices and less oil production in EIA’s forecast


The U.S. Energy Information Administration raised its 2020 forecast for West Texas Intermediate and Brent crude oil prices and lowered its expectations for U.S. crude-oil production, according to the Short-Term Energy Outlook report released Tuesday.

The EIA pegged its 2020 WTI oil price forecast at $35.14 a barrel, up 16.7% from its May forecast. It also lifted its Brent crude price forecast by 11.4% to $38.02 for 2020.

The agency expects U.S. crude production of 11.56 million barrels a day this year, down 1% from the previous view. Demand for global petroleum and liquid fuels, meanwhile, will average 92.5 million barrels a day this year, down 8.3 million barrels a day from 2019.

In Tuesday trading, July WTI oil CLN20, -1.95% was down 24 cents, or 0.6%, at $37.95 a barrel and August Brent BRNQ20, -1.55% fell 30 cents, or 0.7%, to $40.50 a barrel.

Source: Market Watch