The U.S. Energy Information Administration lifted its 2023 and 2024 forecasts for U.S. and global benchmark oil prices in a monthly report released Tuesday. The EIA said Brent crude is expected to average $85.01 this year, up 2.5% from the March forecast, and prices for the global benchmark will likely average $81.21 in 2024, up 4.7% from the previous forecast. The EIA also raised its forecast for West Texas Intermediate crude prices by 2.8% to $79.24 a barrel this year, and by 5.1% to $75.21 next year. The EIA said the higher price forecasts come after OPEC and its allies, together known as OPEC+, announced crude-oil production cuts for 2023. While the OPEC+ production cut is significant, “we expect growing global production…to offset those cuts,” said EIA Administrator Joe DeCarolis, in a press release. In Tuesday dealings, oil prices continued to trade higher. May WTI crude CLK23 was up $1.49, or 1.9%, to $81.23 a barrel on the New York Mercantile Exchange. June Brent crude BRNM23 added $1.10, or 1.3%, to $85.28 a barrel on ICE Futures Europe.
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