EIA Raises Oil Price Forecast Again



EIA Raises Oil Price Forecast Again
The U.S. Energy Information Administration has raised its Brent oil price forecast for the second time in a row.

The U.S. Energy Information Administration (EIA) has raised its Brent oil price forecast for the second time in a row, the organization’s latest short-term energy outlook (STEO) has revealed.

Brent spot prices are now expected to average $63.93 per barrel in 2019 and $60.51 per barrel in 2020, according to the EIA’s December STEO. Brent spot prices were forecasted to average $63.59 per barrel in 2019 and $60.10 per barrel in 2020 in the EIA’s November STEO. In its October STEO, the EIA forecasted that Brent spot prices would average $63.37 per barrel in 2019 and $59.93 per barrel in 2020.

The EIA reiterated in its December STEO that it expects crude oil prices will be lower on average in 2020 than in 2019 because of forecast rising global oil inventories, “particularly in the first half of next year”.

In its September STEO, the EIA forecasted that Brent spot prices would average $63.39 per barrel in 2019 and $62 per barrel in 2020. In August, the EIA projected that Brent would average $65.15 per barrel in 2019 and $65 per barrel in 2020. Back in July, the EIA forecasted that Brent would average $66.51 per barrel in 2019 and $67 per barrel in 2020.

Earlier this month, Fitch Solutions Macro Research’s (FSMR) latest oil outlook report revealed that the company had left its Brent crude price forecasts unchanged for a second consecutive time.

An FSMR report sent to Rigzone on December 4 outlined that analysts at the company expect Brent to average $64 per barrel this year and $62 per barrel in 2020. The same projections were made in the company’s two previous oil price outlooks.

In August, FSMR analysts expected prices to average $67 per barrel this year and $65 per barrel in 2020. In July the analysts forecasted an average of $70 per barrel in 2019, and $76 per barrel in 2020.

The EIA is the statistical and analytical agency within the U.S. Department of Energy. FSMR is a division within Fitch Group. Fitch Group describes itself as a global leader in financial information services.

To contact the author, email andreas.exarheas@rigzone.com



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