The U.S. Energy Information Administration lowered its 2020 forecast for West Texas Intermediate and Brent crude oil prices and cut its expectations for U.S. crude-oil production, according to the Short-Term Energy Outlook report released Tuesday.
The EIA pegged its 2020 WTI oil price forecast at $29.34 a barrel, down 23% from its March forecast. It also cut its Brent crude price forecast by nearly 24% to $33.04 for 2020.
The agency expects U.S. crude production of 11.76 million barrels a day this year, down 9.5% from the previous view, with its forecast for 2021 output down nearly 13% at 11.03 million barrels a day.
In Tuesday trading, May WTI oil CLK20, 5.67% was up 26 cents, or 1%, at $26.34 a barrel and June Brent BRNM20, 2.26% was down 2 cents, or 0.06%, to $33.03 a barrel.
Source: Market Watch