EIA keeps Brent forecast at $55, expects higher US output

The US Energy Information Administration (EIA) has maintained its oil price forecasts for this year and 2018 in its latest short-term energy outlook.

Brent crude is expected to average $55 per barrel (bbl) in 2017, and $57/bbl in 2018 – in line with its projection’s last month. West Texas Intermediate (WTI) crude is expected to average about $1/b less than Brent prices in the forecast, the agency said.

The EIA raised its forecast on US crude production to average 9.2 million barrels per day (bpd) in 2017 and 9.7 million bpd in 2018.

The previous outlook report predicted US crude production at 9 million bpd in 2017 and 9.5 bpd in 2018.

The implied global petroleum and liquid fuels inventories increased by an estimated 0.5 million bpd in 2016, the agency said.

It expects a relatively balanced oil market in the next two years, with inventory builds averaging 0.1 million bpd in 2017 and 0.2 million bpd in 2018.