The U.S.' Energy Information Administration (EIA) increased its Brent oil price forecast for 2019, according to the EIA's Short-Term Energy Outlook report for March released on Tuesday.
International benchmark Brent crude price is expected to average $63 per barrel this year, a $2 per barrel increase from the previous month's report.
The price forecast for next year, on the other hand, was kept unchanged at $62 a barrel, according to the March report.
To explain the downward revision in the Brent price forecast, the EIA said global liquid fuels inventories fell by 1.4 million barrels per day (bpd), marking "the largest inventory withdrawal for any month since June 2017."
The administration also said it expects an extension into the second half of this year of the oil production cut agreement between OPEC and non-OPEC oil producing nations.
Spearheaded by Saudi Arabia, OPEC and Russia-led non-OPEC agreed on Dec. 7 to lower their total crude output by 1.2 million bpd for the first six months of 2019.
- US output estimates lowered
The EIA, however, lowered its U.S. crude oil production forecast for 2019 and 2020.
Crude production in the country is now estimated to average 12.3 million bpd this year, down 100,000 bpd from the EIA's February report.
For 2020, the U.S.' crude oil output is expected to average 13 million bpd, which is down 200,000 bpd from the previous month's report.
Crude oil production in the U.S. reached 11.7 million bpd in November 2018 and surpassed Saudi Arabia and Russia to became the world's largest crude producer.
The U.S.' crude oil output climbed to a fresh record high of 12.1 million bpd for the week ending Feb. 22, according to the EIA.
By Ovunc Kutlu