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

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The U.S. Energy Information Administration reduced its 2020 forecasts for U.S. and global benchmark oil prices, but raised its U.S. crude production outlook for this year, according to the Short-Term Energy Outlook report released Tuesday. The EIA cut its 2020 West Texas Intermediate crude price forecast to $38.76 a barrel, down 0.6% from the September forecast. It expects 2021 prices to average $44.72, down 0.8% from the previous forecast. For Brent crude, it also lowered this year’s forecast by 1.7% to $41.19 and next year’s by 4.1% to $47.07. The EIA said it expects domestic oil production to average 11.45 million barrels per day this year, up 0.6% from the previous view, but it left the 2021 forecast unchanged at 11.09 million barrels per day. In Tuesday dealings, November West Texas Intermediate crude traded at $40.29 a barrel, up $1.07, or 2.7%. December Brent crude traded at $42.24, up 95 cents, or 2.3%.
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