Energy Information Administration (EIA) has revised downward its oil price outlook for 2021-2022 over mounting worries that travel turmoil will extend into next year.
EIA Trims Demand Forecast
The agency foresees another 5 million bpd increase this year and an additional 3.6 million bpd in global consumption in 2022, resulting in 101 million bpd, and will outpace the weaker than expected rise in demand.
The double whammy of the proliferation uncertainty of the Delta variant and the fostering concerns of travelling restrictions has shaken the already spooked oil markets casting more doubt on demands.
EIA: Oil Prices, Production Rates
The EIA decided to cut the 2021 Brent crude oil price by 10 cents per barrel to $ 68.61 per barrel. While keeping that of 2022 at $ 66.04 per barrel.
The agency projects the price of WTI crude oil to be lowered by 24 cents per barrel to $65.69 per barrel and expected the price to plummet deeper in 2022 to an average of $ 62.37 per barrel.
The agency sees Opec crude oil production to average at 26.4 million bpd in 2021. Similarily, EIA slid 2022 outlook for oil output to 28.34 million, a 300,000 bpd decrease from the previous month.
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