US EIA delays short-term outlook report amid oil market downturn

Energy Information Administration (EIA) in the United States announced on Monday that it will delay publication of its "Short-Term Energy Outlook Report" (STEO), amid a drop in oil prices nearing four-year lows due to growing fears of a worldwide recession.

EIA announced in an email that the report scheduled for publication on Tuesday, April 8 will now be released on Thursday, 10 April at 12:00 noon EDT (1600 GMT). The EIA has re-run the models for STEO forecasts in order to reflect recent market developments.

Why it's important

The STEO monthly report provides the EIA’s predictions for U.S. oil demand and supply, as well as commentary by analysts on any recent changes or developments that may have impacted its forecasts.

EIA reports detailed statistics only in the United States. Market participants follow its publications closely to make trading decisions.

CONTEXT

Since April 2, when U.S. president Donald Trump announced tariffs on trade partners such as China and the European Union, U.S. benchmark crude oil futures are down more than 10% and near four-year lows.

Tariffs have increased concerns about a global economic recession. China has responded with additional duties on U.S. imported goods, and the European Union is considering similar measures. Oil and fuel demand usually decreases when economic activity slows.

The oil prices were also impacted by a sudden decision made by the Organization of Petroleum Exporting Countries (OPEC) and its allies to accelerate the planned unwinding of long-term output cuts. (Reporting and editing by Nia William in New York, Shariq Khan is reporting from New York)

(source: Reuters)