Oil price forecasts for 2017 and 2018 have been revised down, according to the U.S. Energy Information Administration (EIA) Tuesday.
American benchmark West Texas Intermediate (WTI) is expected to average $52 per barrel in 2017, and international benchmark Brent crude is estimated to average $54 a barrel this year, the EIA said in its Short-Term Energy Outlook (STEO) for April.
WTI was forecast to average $54 a barrel, while Brent crude was anticipated to average $55 per barrel in last month's STEO.
In addition, the WTI price forecast for 2018 was revised down to $55 per barrel, from $56 a barrel, but the Brent estimate for next year was kept unchanged at $57 per barrel.
With regard to the downward revision in prices, the EIA pointed out that it expects crude oil production in the U.S. and global oil supply to increase in 2017 and 2018.
Although the EIA forecasts domestic crude oil output in the U.S. to stay unchanged at 9.2 million barrels per day (mbpd) in 2017, it revised up its 2018 estimate of the U.S. crude production to 9.9 mbpd, from 9.7 mbpd.
The EIA also said it expects total oil supply around the world to reach 98.3 mbpd this year, and 100.2 mbpd next year, according to its April STEO.
In March's STEO, global oil supply was anticipated to average 98.2 mbpd in 2017, and 99.9 mbpd in 2018.
By Ovunc Kutlu in New York
Anadolu Agency
ovunc.kutlu@aa.com.tr