EIA STEO Forecasts Tighter Supply and Demand Balances for U.S. Oil Markets

The EIA lowered its price outlook for West Texas Intermediate crude for the year to $80.21 per barrel.

SEATTLE (Oil Monster):  The latest Short Term Energy Outlook (STEO) published by the U.S. Energy Information Administration (EIA) has forecast tighter supply and demand balances for U.S. oil markets in 2024. Furthermore, the agency lowered its outlook for crude oil prices.

The EIA raised U.S. oil demand forecasts for 2024 by 100,000 bpd to 20.5 million bpd. The world oil demand growth forecast for the year was kept unchanged for the current year. Meantime, the consumption is expected to witness an increase by 1.1 million bpd year-on-year to 102.9 million bpd.

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The U.S. oil production is predicted to surge by 300,000 bpd to a record 13.23 million bpd in 2024. This is slightly lower than its earlier forecast which predicted production to jump higher by 320,000 bpd this year.

The EIA lowered its price outlook for West Texas Intermediate crude for the year to $80.21 per barrel, down marginally by 2.2% from its previous forecast of $82.03 per barrel. The lower price forecast is mainly on account of the recent sell-offs triggered by economic concerns, EIA noted.

However, EIA expects Brent futures to range between $85 and $90 by the end of the year, largely due to anticipated lower inventories on account of production cuts by OPEC+ countries.