US energy agency revises up oil price forecast

Baku, December 9, AZERTAC

The US Energy Information Administration (EIA) revised up global crude oil prices for 2020 and 2021, the EIA announced Wednesday in its Short-Term Energy Outlook (STEO) for December, according to Anadolu Agency. 

International benchmark Brent crude is estimated to average $41.43 in 2020 recording a 2.1% increase compared to the agency's forecast last month.

The EIA also revised up its Brent oil price forecast by 4.2% to $48.53 for 2021.

"The forecast for higher crude oil prices next year reflects EIA’s expectation that while inventories will remain high, they will decline with rising global oil demand and restrained OPEC+ oil production."

American benchmark West Texas Intermediate (WTI) is expected to average $38.96 for this year and $45.78 next year, the EIA said.

It indicated that the revisions reflected heightened levels of uncertainty because responses to COVID-19 are still evolving.

"Reduced economic activity related to the COVID-19 pandemic has caused changes in energy demand and supply patterns in 2020 and will continue to affect these patterns in the future," the Administration said.

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