EIA lifts price forecasts for oil, cuts U.S. crude production outlook for 2020

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The U.S. Energy Information Administration raised its 2020 forecasts for U.S. and global benchmark oil prices, but reduced its U.S. crude production outlook for this year, according to the Short-Term Energy Outlook report released Tuesday. The EIA lifted its 2020 West Texas Intermediate crude price forecast to $38.50 a barrel, up 2.5% from the July forecast. It expects 2021 prices to average $45.53 in 2021, down 0.4% from the previous forecast. For Brent crude, it raised this year’s forecast by 2.3% to $41.42, though lowered next year’s by 0.3% to $49.53. The EIA also said it expects domestic oil production to an average 11.26 million barrels per day this year, down 3.2% from the previous view, while lifting the 2021 forecast by 1.2% to 11.14 million barrels per day. In Tuesday dealings, September West Texas Intermediate crude traded at $42.17 a barrel, up 23 cents, or 0.6%. October Brent crude traded at $45.17, up 18 cents, or 0.4%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.