The US Energy Information Administration (EIA) significantly revised down the price of Brent crude by $7 per barrel in this year's forecast late Tuesday, citing weakening global economic conditions and perceived risks in the global banking sector.
In its Short-Term Energy Outlook (STEO) released late Tuesday, the EIA revised down the price of Brent crude this year to $78.05 per barrel and the American benchmark, West Texas Intermediate (WTI), to $73.62 per barrel. In the report last month, these figures were $85.01 and $79.24, respectively.
For next year, the agency expects the price of Brent crude to average $74.47 per barrel and WTI to average $69.47 per barrel.
The EIA cited the lower price forecast despite OPEC and partner countries (OPEC+) cutting production by 1.2 million barrels per day (bpd) in April, which contributed to subsequent price increases.
The agency, however, stated that ongoing concerns about weakening global economic conditions, perceived risks in the global banking sector, and persistent inflation outweighed the initial oil price increases, resulting in lower prices.
-US crude oil production increases
Crude oil output in the US is predicted to reach an average of 12.53 million barrels per day (bpd) this year, up from 11.89 million bpd last year.
Next year, crude oil output in the country is expected to reach 12.69 million bpd.
OPEC’s output for petroleum and other liquid fuels is estimated to average 33.67 million bpd this year and 34.45 million bpd in 2024. The group’s crude oil production will stand at 28.34 million bpd this year and 28.99 million bpd next year.
According to the report, global crude oil production will average 101.34 million bpd in 2023 and 103.02 million bpd in 2024.
Global oil demand, meanwhile, is predicted to reach 100.99 million bpd at the end of the year and 102.71 million bpd next year. Non-OECD Asia, led by China and India, is expected to lead demand growth.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr