The US Energy Information Administration (EIA) significantly revised down its 2024 forecast for global Brent crude oil prices late Tuesday, citing the downward price pressure of higher global oil inventories.
In the January Short-Term Energy Outlook (STEO), the EIA revised down the price of Brent crude for 2023 to an average of $83.10 per barrel and the American benchmark, West Texas Intermediate (WTI), to $77.18 a barrel in 2023. In the report last month, these figures were $101.48 and $95.22, respectively.
For next year, the agency expects the price of Brent crude to average $77.57 per barrel and WTI to average $71.57 per barrel.
The EIA said that the downward pressure on crude oil prices would be led by global oil inventories build.
- US crude oil production increases
Crude oil output in the US is predicted to average 12.41 million barrels per day (bpd) in 2023, up from 11.86 million bpd in 2022.
In 2024, crude oil output in the country is expected to reach 12.81 million bpd.
OPEC’s output for petroleum and other liquid fuels is estimated to average 34.34 million bpd in 2023 and 35.02 million bpd in 2024. Group’s crude oil production will stand at 28.87 for 2023 and 29.51 for 2024.
Global crude oil production will average 101.10 million bpd in 2023 and 102.83 million bpd in 2024.
The agency forecasts that global oil demand post more than 1 million barrels per day of increase to reach 100.48 million bpd at the end of the year and 102.20 million bpd next year.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr