November 22, 2024

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Oil prices decline and the Energy Information Administration lowers its forecasts

Oil prices decline and the Energy Information Administration lowers its forecasts

The US Energy Information Administration (EIA) lowered its forecast for oil prices in 2024 in its latest short-term market outlook report, foreign agencies reported.

Specifically, the government agency lowered its 2024 WTI forecast to $89.24 per barrel, down 1.8% from the October forecast.

As for Brent crude, he lowered his expectations by 1.8% to $93.24 per barrel.

The EIA warned in its report: “Although the matter has not directly impacted oil markets yet, heightened uncertainty following recent attacks in Israel and the risk that tensions could spill over into the broader Middle East region pose risks to oil supplies.” “.

The December crude oil contract fell $3.05, or 3.8%, to $77.77 a barrel on the New York Mercantile Exchange today.

January Brent crude lost $3.21, or 3.8%, in ICE futures to $81.97 a barrel.

Low demand and high production

The EIA also expects US demand to decline, with production higher but slightly lower than previously expected.

In particular, US production will rise to 12.9 million barrels per day in 2023 from the previous estimate of 12.92 million barrels.

Total US oil consumption is also expected to decline by 300,000 barrels per day to 20.1 million barrels per day this year compared to a previous estimate of an increase of 100,000 barrels per day.

The EIA also expects gasoline consumption in the United States to decline by 1% in 2024.