EIA Lowers Oil Price And U.S. Output Forecasts

The U.S. Energy Information Administration on Tuesday lowered its price forecasts on West Texas Intermediate and Brent crude oil for this year and next and cut its U.S. production outlook for 2018. In its monthly energy outlook report, the government agency forecast WTI prices at $48.95 a barrel for this year, down 3.6% from its June forecast. For 2018, it forecast $49.58--down 7.5% from the previous outlook. The EIA also lowered its 2017 forecast on Brent crude by 3.6% to $50.79 and its 2018 outlook by 7.2% to $51.58. It left its U.S. crude production view at 9.33 million barrels per day this year, but reduced its 2018 output view by 1% to 9.90 million barrels a day. August WTI crude traded at $45.20 a barrel, up 79 cents, or 1.8%. September Brent crude added 80 cents, or 1.7%, to $47.68 a barrel.