EIA trims outlook on 2018 oil prices, US production

The US Energy Information Administration has cut its forecast on crude oil prices for this year and next, while also slashing its outlook on US crude production in 2018, according to the agency’s latest monthly energy outlook released Tuesday.

Global benchmark North Sea Brent crude oil prices are forecast to average $51 per barrel (bbl) in 2017 and $52/bbl in 2018 – down $2/bbl and $4/bbl from last month’s projection.

Average West Texas Intermediate (WTI) crude oil prices are forecast to be $2/bbl lower than the Brent price in both 2017 and 2018.

Brent crude oil spot prices averaged $46/bbl in June, a $4/bbl decrease from the May average and the lowest monthly average since November year when prices averaged $45/bbl, the agency said.

US crude oil production, meanwhile, is forecast to average 9.9 million barrels per day (bpd) in 2018, down from last month’s estimate of 10 million bpd.

Projection for 2017 output was held stable at 9.3 million bpd.