EIA Lowers 2016 WTI, Brent Oil Price Forecasts

By Myra P. Saefong Markets MarketWatch Pulse

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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