EIA raises 2018 Brent price outlook to $56

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The US Energy Information Administration (EIA) raised its estimates on Brent crude prices for this year and next by $1 and $2, respectively, according to the agency latest short-term energy outlook released Tuesday.

The EIA expects Brent spot prices to average $53 per barrel (bbl) in 2017 and $56/bbl in 2018, against its last month’s estimates of $52 per barrel (bbl) in 2017 and $54/bbl in 2018.

West Texas Intermediate (WTI) crude oil prices are forecast to average almost $5/b lower than Brent prices in 2018.

The US crude oil production averaged 9.3 million barrels per day (bpd) in October, down 90,000 bpd from the September level, EIA said. The lower production reflected the effects of Hurricane Nate, it added.

The agency said US production is expected to average 9.2 million bpd for all of 2017 and 9.9 million bpd in 2018.