: EIA lifts price outlooks for WTI and Brent oil with global supplies expected to tighten

The Energy Information Administration on Tuesday raised its 2023 and 2024 forecasts for U.S. and global benchmark crude-oil prices on Tuesday, and said it expects global oil inventories to fall through the end of this year following Saudi Arabia’s decision to extend its voluntary 1 million barrel-per-day production cut through December. In its monthly Short-term Energy Outlook report, the government agency raised its 2023 forecast for West Texas Intermediate crude prices to $79.65 a barrel, up 2.4% from the August forecast. For 2024, it increased its forecast by 2.1% to $83.22. For Brent crude, it lifted its 2023 forecast by 2.2% to $84.46 and its 2024 forecast by 2% to $88.22. The EIA also said it expects global oil inventories to fall by 600,000 barrels a day in the third quarter of this year, and that declines will “moderate” to 200,000 barrels a day in the fourth quarter, but OPEC+ output cuts will “keep global oil production lower than global oil demand.” In Tuesday dealings, October WTI crude oil CLV23 was up $1.78, or 2%, to $89.07 a barrel on the New York Mercantile Exchange. November Brent crude BRNX23 on ICE Futures Europe traded at $92.18 a barrel, up $1.54, or 1.7%.

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