The US Energy Information Administration (EIA) revised up the price of Brent crude for 2024 and 2025, citing a decrease in global oil inventory in the near term.
In its Short-Term Energy Outlook (STEO) released on Tuesday, the agency forecast that the extension of the OPEC+ production cuts would tighten global oil supplies in the near term.
According to the report, tightened supplies would contribute to significant global oil inventory declines in the agency's forecast for the second quarter of 2024.
It forecast that global oil inventories would fall by 900,000 barrels per day (bpd) in the second quarter, relative to last month’s report, when the agency expected inventories to remain relatively unchanged.
Because of falling inventories, the EIA now forecasts that Brent will reach $87 per barrel and the American West Texas Intermediate (WTI) will hit $82.15 per barrel in 2024. These figures were $82.42 and $77.68, respectively, in the previous month's report.
According to the IEA, prices will stay relatively flat through the remainder of the year before mildly declining in 2025 due to rising stocks and the expiration of OPEC+ production cuts.
For next year, the agency expects Brent crude to average $84.80 per barrel and WTI to average $80.30 per barrel.
The IEA also predicts that global oil demand will grow by 1.4 million bpd in both 2024 and 2025.
- US crude oil production revised up
Crude oil output in the US is predicted to average 13.19 million bpd in 2024, up from 12.93 million bpd last year. The figure is also 90,000 bpd higher than the previous month’s forecast.
Next year, crude oil output in the country is expected to reach 13.65 million bpd, up by 160,000 bpd from last month’s prediction.
The agency also forecasts that global oil production will be 102.17 million bpd at the end of the year and 104.17 million bpd next year.
World oil demand, meanwhile, is anticipated to reach 102.43 million bpd in 2024, while demand is expected to be around 103.81 million bpd in 2025.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr