The U.S. Energy Information Administration (EIA) has raised its oil price forecasts for 2020 and beyond, its latest short term energy outlook (STEO) report has revealed.
The EIA now expects the Brent spot price to average $38.02 per barrel this year and $47.88 per barrel in 2021, according to its June STEO. Back in the EIA’s May STEO, the Brent spot price was expected to average $34.13 per barrel this year and $47.81 per barrel next year.
West Texas Intermediate (WTI) spot prices are expected to average $35.14 per barrel in 2020 and $43.88 per barrel in 2021, the EIA’s June STEO shows. These prices were forecasted to average $30.10 per barrel this year and $43.31 per barrel next year in the EIA’s previous STEO.
“The forecast of rising crude oil prices reflects expected declines in global oil inventories during the second half of 2020 and through 2021,” the EIA stated in its June STEO, which was released on Tuesday.
“EIA expects high inventory levels and spare crude oil production capacity will limit upward price pressures in the coming months, but as inventories decline into 2021, those upward price pressures will increase,” the EIA added.
The EIA now expects global oil inventories will begin declining in June, a month earlier than previously forecasted. The sooner than expected draws are the result of sharper declines in global oil production during June and higher global oil demand than previously expected, according to the EIA.
Global oil inventories at the end of May stood 1.4 billion barrels higher than they were at the end of 2019, the EIA estimates.
The EIA is the statistical and analytical agency within the U.S. Department of Energy. It collects, analyzes, and disseminates independent and impartial energy information, according to its website.
To contact the author, email andreas.exarheas@rigzone.com
No comments:
Post a Comment