EIA Sees Slightly Lower Oil Prices in Coming Months
The latest number-crunching by the EIA led the agency to forecast lower oil prices. (image: piratesmath.com)
The Energy Information Agency has modified its forecast for oil demand and supply in 2010, as reported by Reuters on Tuesday. According to the EIA, world oil consumption is expected to rise by 1.1 million to 85.22 million barrels per day next year; that number is lower than the EIA’s earlier forecast, which said that consumption would rise by 1.26 million to put global daily consumption at 85.40 million barrels. The EIA also said that it expects supply from both OPEC and non-OPEC oil producing nations to slightly increase.
Oil prices are predicted to be $1 lower than previously forecast; the EIA now thinks that oil will cost an average of $75 per barrel this winter. This corresponds with the EIA’s new estimates suggesting growing supply and shrinking demand. But nothing is ever simple in the oil industry, and predictions about the future of oil prices vary widely. Despite the EIA’s latest revisions, the agency has maintained its forecast that the average price of one barrel of crude will increase to $82 next year.
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