January 11, 2017•Update: January 11, 2017
By Ovunc Kutlu
NEW YORK
The U.S. Energy Information Administration (EIA) said Tuesday it expects higher crude oil prices this year, according to its Short-Term Energy Outlook report for January.
American benchmark West Texas Intermediate (WTI) is expected to average $52.50 a barrel in 2017, while international benchmark Brent crude is projected to average $53.50 per barrel this year.
Previous estimates for the benchmarks were $50.66 per barrel and $51.66 a barrel for this year in the EIA's December report.
The recent upward revision in prices is a result of rate of global oil consumption being anticipated to pace out total production worldwide in 2017.
The EIA expects OPEC's crude output to increase from 32.89 million barrels per day (mbpd) from last year to average 33.22 mbpd this year, rising 0.33 mbpd.
Production of crude and oil liquids among non-OPEC countries is anticipated to rise from 56.85 mbpd in 2016 to 57.26 mbpd in 2017, marking an increase of 0.41 mbpd.
Global oil consumption, however, is projected to jump from 95.57 mbpd last year to 97.20 mbpd this year, with a 1.63 mbpd rise -- more than double the total daily output worldwide.
The EIA also revised up its projection for the U.S.' domestic crude production for this year and the next.
Domestic output in the country is expected to rise from 8.9 mbpd in 2016 to 9 mbpd in 2017 and 9.3 mbpd in 2018. Previous estimates were 8.7 mbpd for this year, and 8.8 mbpd for the next.
Revision in output forecast is a result of increase in the U.S.' Gulf of Mexico production.
"Rising tight oil production, which results from increases in drilling activity, rig efficiency, and well-level productivity, also contributes to forecast U.S. production growth," the EIA added.
