EIA lowers 2020, 2021 oil-price forecasts

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The U.S. Energy Information Administration reduced its 2020 and 2021 forecasts for U.S. and global benchmark oil prices, according to the Short-Term Energy Outlook report released Tuesday. The EIA cut its 2020 West Texas Intermediate crude price forecast to $38.24 a barrel, down 1.3% from the October forecast. It expects 2021 prices to average $44.24, down 1.1% from the previous forecast. For Brent crude, it also reduced this year’s forecast by 1.4% to $40.61 and next year’s by 1% to $46.59. The EIA also said it expects domestic oil production to average 11.39 million barrels per day this year, down 0.5% from the previous view, but it modestly lifted the 2021 forecast by 0.1% to 11.1 million barrels per day. In Tuesday dealings, December West Texas Intermediate crude traded at $41.26 a barrel, up 97 cents, or 2.4%. January Brent crude traded at $43.42, up $1.02, or 2.4%.
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