The U.S.' Energy Information Administration (EIA) has revised up its oil price forecast for 2020 by $0.50 per barrel, according to its monthly Short-Term Energy Outlook (STEO) report for December released on Wednesday.
International benchmark Brent crude is now estimated to average $60.50 per barrel next year, while American benchmark West Texas Intermediate (WTI) is expected to average $55.00 a barrel in 2020.
In November's STEO report, Brent was forecast to average $60 a barrel, and WTI was estimated to average $54.50 per barrel next year.
The EIA said the decision of OPEC and non-OPEC last week to curb oil production by an additional 0.5 million barrels per day (bpd) for the first quarter of 2020, on top of the existing output curb of 1.2 million bpd, would provide some support for oil prices.
"However, EIA assumes that OPEC will limit production through all of 2020, amid a forecast of rising oil inventories," December's STEO said.
"EIA forecasts OPEC crude oil production will average 29.3 million bpd in 2020, down by 0.5 million bpd from 2019," it added.
- U.S. crude output revised down for 2020
The EIA, however, revised down the U.S.' crude oil production for next year by 100,000 barrels per day (bpd), according to the STEO for December.
Crude oil production in the country is now estimated to average 13.2 million bpd in 2020, compared to the previous expectation of 13.3 million bpd in the STEO for November.
The U.S.' crude oil output is forecast to end 2019 with an average of 12.25 million bpd, the STEO for December showed.
By Ovunc Kutlu