EIA lowers US oil output, price forecasts for 2016, 2017

The U.S. Energy Information Administration (EIA) on Tuesday lowered its 2016-2017 forecasts for Brent crude prices and estimates for U.S. crude output and West Texas Intermediate crude prices.

Brent crude oil prices are estimated to average $34 per barrel (bbl) this year and $40/bbl in 2017, the agency said. That’s $3 lower in 2016, and $10 cheaper in 2017.

"The lower forecast prices reflect oil production that has been more resilient than expected in a low-price environment and lower expectations for forecast oil demand growth," EIA said.

North Sea Brent crude oil prices averaged $32/bbl in February– an increase by $1/bbl from January.

U.S. crude production averaged an estimated 9.4 million barrels per day (bpd) in 2015, and is forecast to average 8.7 million bpd in 2016, and 8.2 million bpd in 2017. Crude oil production in February is estimated to have averaged 9.1 million bpd, lower by 80,000 bpd against January’s level.

Forecast for WTI crude prices are expected to average the same as Brent in 2016 and 2017.