The US Energy Information Administration (EIA) has revised up its Brent crude oil price forecast for 2020 by $2.50 per barrel, according to its monthly Short-Term Energy Outlook (STEO) report for July released on Tuesday.
The international benchmark is now expected to average $40.50 per barrel this year, up from its previous estimate of $38 a barrel.
Brent crude prices averaged $50 per barrel during the first quarter of 2020 and $29 per barrel during the second quarter of this year. It is anticipated that it will average $40 a barrel in the third quarter of 2020, and $43 a barrel in the fourth quarter of the year.
The EIA said it forecasts that Brent will average $49.70 per barrel next year, as "inventories decline into 2021."
"The forecast of rising crude oil prices reflects the EIA’s expectation of declines in global oil inventories during the second half of 2020 and through 2021," the report said.
US crude output unchanged
The EIA did not revise US crude oil production for this year in its STEO report for July.
Crude oil production in the country is estimated to average 11.60 million bpd in 2020. It is forecast to decrease to an average of 11 million bpd in 2021.
The US surpassed Saudi Arabia and Russia in November 2018 to become the world's largest crude oil producer.
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