EIA announces crude prices forecasts
Brent price will average $53 per barrel in 2015 and $56 per barrel in 2016, according to the forecasts published in the U.S. Energy Information Administration's (EIA) Short-Term Energy Outlook (STEO).
Price for WTI is expected by the EIA to be $4 per barrel lower than the Brent price in 2015 and $5 per barrel lower in 2016.
Brent prices averaged $44 per barrel in November, a $4 per barrel decrease from October. Global oil inventories are estimated to have increased by 1.3 million barrels per day in November, putting downward pressure on Brent prices, according to the EIA’s report.
Global oil prices plunged from about $108 in the first half of 2014 to below $40 currently due to glut in markets.
On the New York Mercantile Exchange, January futures for WTI decreased by 0.4 percent to $37.51 a barrel on December 8. January Brent crude on London’s ICE Futures exchange decreased by 1.2 percent to $40.26 a barrel.
EIA estimates that total U.S. crude oil production declined by about 60,000 barrels a day in November compared with October. Crude oil production is forecast to decrease through the third quarter of 2016 before growth resumes late in 2016. Projected U.S. crude oil production averages 9.3 million barrels a day in 2015 and 8.8 million barrels a day in 2016.
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