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US energy administration raises 2025 oil price forecast
(MENAFN) The US Energy Information Administration (EIA) has upgraded its crude oil price forecast for 2025 due to relatively lower global oil inventories expected in the first quarter of the year.
The anticipated price increases are primarily attributed to the OPEC+ group’s recent extension of production cuts, which is expected to result in global oil inventory reductions of 500,000 barrels per day (bpd) on average in the first quarter of 2025, according to the EIA’s latest Short-Term Energy Outlook (STEO) released on Tuesday.
The agency projects that declining global oil stocks will push crude oil prices up by USD2 per barrel from the December 2024 average, reaching an average of USD76 per barrel in the first quarter of 2025.
However, following a short-term price rise at the beginning of 2025, the EIA anticipates that oil prices will decrease from mid-2025 through to the end of 2026, as global oil production growth surpasses the increase in oil demand.
Consequently, the EIA forecasts that the average price for Brent crude will be USD74.31 per barrel, while West Texas Intermediate (WTI) crude will average USD70.31 per barrel in 2025. These projections are up slightly from the previous month's report, which estimated Brent at USD73.58 and WTI at USD69.12.
The anticipated price increases are primarily attributed to the OPEC+ group’s recent extension of production cuts, which is expected to result in global oil inventory reductions of 500,000 barrels per day (bpd) on average in the first quarter of 2025, according to the EIA’s latest Short-Term Energy Outlook (STEO) released on Tuesday.
The agency projects that declining global oil stocks will push crude oil prices up by USD2 per barrel from the December 2024 average, reaching an average of USD76 per barrel in the first quarter of 2025.
However, following a short-term price rise at the beginning of 2025, the EIA anticipates that oil prices will decrease from mid-2025 through to the end of 2026, as global oil production growth surpasses the increase in oil demand.
Consequently, the EIA forecasts that the average price for Brent crude will be USD74.31 per barrel, while West Texas Intermediate (WTI) crude will average USD70.31 per barrel in 2025. These projections are up slightly from the previous month's report, which estimated Brent at USD73.58 and WTI at USD69.12.
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