The Energy Information Administration (EIA) has revised its forecasts for U.S. and global benchmark crude-oil prices in its latest Short-Term Energy Outlook report. According to the report released on Tuesday, the government agency has reduced its 2024 forecast for West Texas Intermediate (WTI) crude prices by 1.8% compared to its October forecast, now estimating them to be at $89.24 per barrel. Similarly, the EIA has also revised down its 2024 forecast for Brent crude by 1.8% to $93.24 per barrel.
The EIA highlights the potential risks to oil supply due to recent attacks on Israel and the possibility of tensions spreading throughout the Middle East. Although these events have not yet directly impacted physical oil markets, the agency states that there is heightened uncertainty. This uncertainty includes concerns about available surplus production capacity.
In recent trading, December WTI crude oil decreased by 3.8% or $3.05 to reach $77.77 a barrel on the New York Mercantile Exchange. Meanwhile, January Brent crude on ICE Futures Europe traded at $81.97 a barrel, down $3.21 or 3.8%.
These revised forecasts by the EIA reflect the changing dynamics and potential risks in the global oil market, allowing investors and industry professionals to make informed decisions moving forward.