The U.S.' Energy Information Administration (EIA) has kept its oil price forecasts for 2020 unchanged, according to its monthly Short-Term Energy Outlook (STEO) report for November released on Wednesday.
International benchmark Brent crude is estimated to average $60 per barrel next year, while American benchmark West Texas Intermediate (WTI) is expected to average $54.50 a barrel in 2020.
Brent crude, in addition, is anticipated to end 2019 with an average price of $63.50 a barrel, while WTI is forecast to finish this year averaging $56.50 per barrel.
"Crude oil markets traded in a relatively narrow range in October following heightened volatility in September stemming from the attack on Saudi Arabian crude oil processing facilities," the report said, adding, "Saudi Arabian production has returned to pre-attack levels."
The report said that on the demand side, economic activity in some major economies remains slow, particularly in China's gross domestic product growth in the third quarter of 2019, which marked the slowest rate since 1992.
However, the EIA expects that with the U.S. Federal Reserve and other central banks recently signaling a more accommodating monetary policy, including lower interest rates, that capital expenditures and other investment spending will be stimulated.
- U.S. crude output revised up for 2020
The EIA also revised up the U.S.' crude oil production for next year by 100,000 barrels per day (bpd), according to it STEO for November.
Crude oil production in the country is now estimated to average 13.3 million bpd in 2020, compared to the previous expectation of 13.2 million bpd in the STEO for October.
The U.S.' crude oil output is forecast to end 2019 with an average of 12.3 million bpd, the STEO for November showed.
By Ovunc Kutlu