EIA predicts that oil prices will be pressured by oversupply between 2025 and 2026
The U.S. Energy Information Administration's Short-Term Energy Outlook, released on Tuesday, said that oil prices would be pressured in 2025 and in 2026 due to the global production growth exceeding demand.
Analysts expect a glut of oil this year after the demand growth in the two largest consumers, the U.S.A. and China, slowed dramatically in 2024.
The EIA expects Brent crude prices to drop 8%, to an average of $74 per barrel by 2025. Prices will then continue to decline to $66 per barrel by 2026.
The EIA has slightly increased its estimate for the record U.S. crude oil production in this year to 13,55 million barrels a day from its previous estimate of 13,52 million bpd.
The EIA has said that the global oil and liquid fuels production will average 104.4 millions bpd by 2025. This is up from its previous forecast of 104.2million bpd.
The EIA stated that global demand is expected to be 104.1 million barrels per day, down from its previous estimate of 104.3. Reporting by Shariq and Scott DiSavino, New York; editing by David Gregorio
(source: Reuters)
