EIA forecasts Brent crude at $52 in 2018

The US Energy Information Administration (EIA) on Wednesday said it expects North Sea Brent crude oil spot prices to average $51 per barrel (bbl) in 2017 and $52/bbl in 2018 – same as the agency’s projections last month.

According to EIA’s latest monthly energy outlook released Tuesday, Brent crude prices averaged $48/bbl in July, which was $2/bbl higher than the June average and almost $4 higher than in July 2016.

The agency expects West Texas Intermediate (WTI) crude oil prices to average $2/bbl lower than the Brent price in both 2017 and 2018.

In terms of supply, EIA forecast US crude oil average 9.35 million barrels per day (bpd) in 2017, and 9.91 million bpd in 2018.

The 2018 production estimates mark the highest annual average production in US history, surpassing the previous record of 9.6 million bpd set in 1970, EIA said.