The U.S. Energy Information Administration cut its 2016 forecasts for West Texas Intermediate and Brent crude prices in a monthly report issued Tuesday. The government agency said it expects WTI prices to average $37.59 a barrel this year. It previously forecast a 2016 average of $38.54. The EIA also said it expects Brent crude to average $37.52 a barrel this year, compared with a previous forecast for $40.15. The government agency also reduced its 2016 U.S. oil output forecast to 8.69 million barrels from 8.73 million barrels. March WTI oil traded at $28.98 a barrel, down 70 cents, or 2.4%, on the New York Mercantile Exchange. Brent crude on ICE Futures lost $1.38, or 4.2%, to $31.48 a barrel.
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