EIA forecasts moderate inventory builds in 2020 and lowers crude oil price forecast (8/7/2019)

In the August 2019 Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) forecasts relatively flat crude oil prices for the remainder of 2019 and through 2020 and a balanced global oil market in 2019 followed by modest inventory builds in 2020 as production growth outpaces consumption growth (Figure 1). In 2019, EIA forecasts that upward pressure on crude oil prices from supply-side constraints will be largely offset by demand-side concerns. In 2020, despite increased crude oil demand resulting from new regulations from the International Maritime Organization (IMO 2020), production is expected to increase more, offsetting the price impacts from increased demand. As a result of the offsetting price pressures, EIA forecasts that crude oil prices will remain relatively flat through 2020. ... More »