The U.S.' Energy Information Administration (EIA) revised up its forecast for crude oil prices for this year and the next, according to its Short-Term Energy Outlook (STEO) report for May released on Tuesday.
In 2018, international benchmark Brent crude is now expected to average $71 per barrel, while American benchmark West Texas Intermediate (WTI) is projected to average $66 a barrel -- both up $7 per barrel compared to last month's report.
In 2019, Brent crude is forecast to average $66 per barrel, while WTI is estimated to average $61 a barrel -- both up $3 per barrel from last month's STEO.
'Since January 2017, the beginning of the crude oil production cut agreement among certain countries within and outside the OPEC, global petroleum inventories have declined at an average rate of more than 0.5 million barrels per day (bpd),' the EIA said in its STEO for May.
'Oil prices may have also risen in anticipation of the potential reinstitution of sanctions on Iran, which could contribute to declines in the country’s crude oil production,' it added.
The EIA also said strong growth in global oil demand has contributed to upward pressures on oil prices.
'EIA estimates that global oil consumption in the first quarter of 2018 was 1.9 million bpd (2 percent) higher than it was in the first quarter of 2017,' the report said.
The administration kept its projection for the U.S.' crude oil production unchanged for this year, but revised it up for next year.
For 2019, the U.S.' crude oil output was revised up 400,000 bpd from last month's report and is now expected to average 11.9 million bpd.
For 2018, the EIA estimates crude oil production in the U.S. to average 10.7 million bpd.
By Ovunc Kutlu in New York
Anadolu Agency
energy@aa.com.tr