EIA Raises U.S. Oil Production Outlook, Cuts Oil Price Forecast

By Myra P. SaefongMarketsMarketWatch Pulse

The U.S. Energy Information Administration raised its forecast on crude-oil production but lowered its outlook on prices, according to the agency's monthly Short-term Energy Outlook report released Tuesday. The EIA forecast U.S. crude production at an average 9.9 million barrels per day in 2018, up 1.8% from the previous forecast. It sees 2017 output at 9.22 million barrels a day, up a modest 0.1% from the previous forecast. The EIA also lowered its crude-price forecast, with West Texas Intermediate crude seen at an average $52.24 a barrel, and Brent crude at $54.23 in 2017, down 2.3% and 0.7% from last month's forecast, respectively. May West Texas Intermediate crude was trading at $53 a barrel, down 8 cents, or 0.2%, while June Brent fell 23 cents, or 0.4%, to $55.75.

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