U.S. Energy Agency Raises Crude Oil Price Forecast
The U.S. Energy Information Administration (EIA) has revised up its average oil price projections for this year and 2026, taking into account recent developments in global oil markets.
In its Short-Term Energy Outlook (STEO) released late Tuesday, the EIA raised its 2025 and 2026 average Brent crude price forecast to $68.91 per barrel, up from $68.76, while West Texas Intermediate (WTI) was revised to $65.32 per barrel from $65.15
For 2026, EIA projects Brent crude to average $55.08 per barrel and WTI to average $51.42 per barrel. In its previous outlook, the agency had estimated prices at $54.92 and $51.26 per barrel, respectively.
The agency said that crude oil prices continue to fall as growing crude oil production outweighs the effect of increased drone attacks on Russia’s oil infrastructure and the latest sanctions on Russia’s oil sector.
EIA forecasts that growing global oil production and lower demand over the winter months will accelerate the accumulation of oil inventories, resulting in further crude oil price declines in the coming period.
Meanwhile, although the agency expects prices to fall in 2026, it assesses that OPEC+ policy and China’s continued inventory builds will limit the declines.
US crude oil output is forecast to average 13.61 million bpd in 2025, up from the 13.59 million barrels projected in the previous report.
For 2026, production is expected to average 13.53 million bpd, compared to the earlier estimate of 13.58 million barrels. Meanwhile, global oil production is forecast to average 106.18 million bpd in 2025 and 107.43 million bpd in 2026.
Consumption is estimated to reach 103.94 million bpd in 2025 and 105.17 million bpd in 2026. # US Energy Agency Raises Oil Price Forecast Oando: Undervalued Giant Poised for Comeback, Investors Await Strategic Reset
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