Energy Preview: EIA Cuts Oil Price Forecast On Demand Uncertainty

The US Energy Information Administration (EIA) cut its outlook for 2019 crude oil prices by $ 3.50 per barrel for WTI and $ 2.95 per barrel for Brent on uncertainty about global oil demand growth. EIA now expects Brent to average $ 66.69 per barrel in 2019, down from $ 69.64/b in last months outlook though it held its 2020 Brent outlook steady at $ 67 level. EIA now sees WTI crude averaging $ 59.29 per barrel in 2019, down from $ 62.79 per barrel in last months outlook, and unchanged at $ 63 per barrel in 2020. Demand-side concerns became the most salient issue during the past month and contributed to volatility and price declines for risk assets such as commodities and equities, EIA said in its Short-Term Energy Outlook. EIA trimmed its outlook for US oil production as well. The report sees 2019 US output averaging 12.32 million b/d, down 130,000 b/d from last months outlook, and 2020 output averaging 13.26 million b/d, down 120,000 b/d from last month.