• 3 minutes War for Taiwan?
  • 7 minutes How China Is Racing To Expand Its Global Energy Influence
  • 10 minutes Is it time to talk about Hydrogen?
  • 4 hours U.S. Presidential Elections Status - Electoral Votes
  • 2 days Mail IN Ballot Fraud
  • 12 hours Supreme Court rules against Cuomo's coronavirus limits
  • 9 hours “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 3 days Michael Moore Cranking Up Planet of the Humans Again
  • 3 hours Saudi Arabia Seeks to Become Top Hydrogen Exporter
  • 8 hours Biden's Green New Deal- Short Term - How Will He Start to Transition Out Of Crude?
  • 2 days Censorship in USA
  • 2 days “Consumers Will Pay For Carbon Pricing Costs” by Irina Slav
Three Key Differences Between Biden And Trump On China

Three Key Differences Between Biden And Trump On China

Tensions between China and the…

Peru’s Oil Industry Is Engulfed In Crisis

Peru’s Oil Industry Is Engulfed In Crisis

Peru’s oil industry is facing…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

EIA Sees WTI Crude Averaging $44 In 2021

WTI Crude oil prices are expected to average $44.24 per barrel next year, the EIA said in its latest Short-Term Energy Outlook (STEO), with the forecast price not much higher than the $42 spot price early on Wednesday.  

This year, WTI Crude prices are expected to average $38.24 per barrel, according to the EIA, which revised down slightly its estimates for the U.S. benchmark and for the international Brent benchmark compared to its estimates in the October STEO.  

In the November STEO this week, the EIA sees Brent Crude prices averaging $40.61 in 2020 and $46.59 next year. This compares to estimates of $41.19 for this year and $47.07 a barrel for 2021 in the October STEO. The October outlook also had higher price projections for WTI compared to the November forecasts. The October average estimate for 2020 was $38.76 a barrel, while the forecast for 2021 was $44.72.

EIA sees the record high global cases of COVID-19 and the return of Libyan oil sooner than market participants had expected as the main headwinds to oil prices now. The administration expects global inventories to continue falling in the coming months, but “high global oil inventory levels and surplus crude oil production capacity will limit upward pressure on oil prices,” it said.

Brent prices will likely stay near $40 a barrel through the end of 2020, the EIA said, and warned of downside risks.

“Uncertainty about responses to increasing COVID-19 cases presents downside risk to EIA’s global oil demand forecast for the fourth quarter of 2020 and first half of 2021,” according to the EIA, which also cut its estimate for global oil consumption between Q4 and mid-2021 by 400,000 bpd compared to the estimate from October.

“The pace of oil demand recovery will affect not only expectations of petroleum inventory withdrawals but also could affect planned oil supply increases” from the OPEC+ group, whose production “will generally be tailored to match the pace of global oil demand recovery,” the EIA said.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News