Inventory draws contribute to higher forecast crude oil prices (5/8/2019)

In its May 2019 update of its Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) forecasts that the Brent crude oil price will average $70 per barrel (b) in 2019 and $67/b in 2020. This price forecast for 2019 and 2020 is higher than any previous STEO forecast in 2019. The 2019 Brent crude oil price forecast in the May STEO is $9/b higher than the January STEO forecast and more than $4/b higher than the April STEO forecast. The upward revision to the price forecast is a reflection of several factors, including higher-than-forecast actual prices in recent months, changes to the global supply and demand outlook resulting in tighter expected global oil market balances, and increased oil supply risks. ... More »