Crude oil price expectations have been revised up for this year and the next, the U.S. Energy Information Administration (EIA) said Tuesday.
International benchmark Brent crude is now estimated to average $54 a barrel in 2017 and $57 per barrel in 2018, the EIA said in its Short-Term Energy Outlook (STEO) for December.
In November's STEO, the EIA said it expected Brent crude price to average $53 per barrel this year and $56 a barrel next year.
American benchmark West Texas Intermediate (WTI) price forecast has also increased. WTI is now anticipated to average $50.50 a barrel in 2017 and $53 in 2018.
In last month's STEO, WTI was estimated to average $50 this year, and $51 next year.
"Crude oil prices traded at the highest levels in more than two years in November and early December 2017," the EIA said for its upward revision in crude oil price forecasts.
"On Nov. 30, OPEC announced an extension of the crude oil supply reduction agreement through the end of 2018 ... The non-OPEC countries that agreed to crude oil production cuts in 2017 also agreed to continue limiting output through the end of 2018," it added.
The EIA kept its U.S. crude production estimates for this year unchanged, but revised up its output projection for 2018.
The administration said it expects crude output in the U.S. to average 9.2 million barrels per day (bpd) in 2017, and 10 million bpd in 2018.
If the 10 million bpd mark is reached, this "would mark the highest annual average production, surpassing the previous record of 9.6 million bpd set in 1970," the EIA said.
(Anadolu Agency)
