EIA raises oil price forecasts for 2016, 2017

The US-based Energy Information Administration (EIA) has raised its forecast for the price of global benchmark Brent crude to $43.73 per barrel in 2016, up from the June forecast of $43.03/bbl.

The EIA also increased its price estimate for West Texas Intermediate (WTI) crude to $43.57/bbl for West Texas Intermediate (WTI) in 2016, up from its estimate of $42.83/bbl last month.

In 2017, Brent and WTI crude prices are expected to average $52.15/bbl.

North Sea Brent crude oil spot prices averaged $48/bbl last month, rising $2 from May – the fifth consecutive monthly increase since hitting a 12-year low of $31/bbl in January.

The agency’s outlook for US crude production in 2016 and 2017 remained unchanged, with production forecast to average 8.6 million barrels a day (mbd) in 2016, and 8.2 mbd in 2017.

US crude production averaged 8.6 mbd in June, 0.2 mbd lower than the previous month, the EIA added.

Write to Jerusha Sequeira at jerusha.s@argaamnews.com