News Digest: US Predicts Crude Oil Prices to Average $84 a Barrel in 2024
June 13, 2024
News Digest:
The US Energy Information Administration (EIA) has forecast Brent crude oil prices to average $88 a barrel in 2024, up from an average $82 per barrel in 2023. The latest report has brought down its previous estimates from $88 a barrel.
In its June 2024 numbers, the EIA is forecasting US crude oil production to average 13.2 million barrels per day during 2024, which represents a 2% increase over 2023 levels. It also predicted crude production in the US to average 13.7 barrels a day in 2025, according to a report.
Takeaway:
From a going perspective, the EIA notes that the OPEC+ grouping would adhere to their production targets of 3.66 million bpd by a year until the end of 2025 and prolong the cuts of 2.2 million bpd by three months until the end of September 2024. However, the EIA believes that some members will keep output below targets to limit global oil inventory builds. Earlier this month, OPEC said it will gradually phase out the cuts of 2.2 million bpd over 12 months starting October 2024.