Record-high U.S. crude oil production contributes to lower forecast prices (12/12/2018)

In the December 2018 update of its Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) decreased its Brent spot price forecast to $71 per barrel (b) in 2018 and $61/b in 2019, down $2/b and $11/b, respectively, from last month. EIA expects that West Texas Intermediate (WTI) crude oil prices will average about $7/b lower than Brent prices next year. In a continuing price decline that began in mid-October, Brent spot prices fell from $71/b on November 1 to $58/b on November 30 (Figure 1), averaging $65/b for the month, down $16/b from October. ... More »