The U.S. Energy Information Administration (EIA) has projected a decrease in global oil inventories in the coming quarters. This forecast follows the recent decision by the Organization of the Petroleum Exporting Countries (OPEC) to extend their oil output cuts until 2024, along with Saudi Arabia’s voluntary cuts extension through August. The EIA’s monthly Short-term Energy Outlook report maintains its previous price forecasts for Brent and West Texas Intermediate (WTI) oil in 2024.
Concerns Over Global Economic Conditions
The EIA’s report explains that persistent concerns surrounding weakening global economic conditions have tempered expectations for global oil demand growth. Consequently, this has counteracted any upward pressure on prices caused by tighter near-term oil supplies.
Unchanged Price Forecasts
The EIA’s price forecasts for 2024 remain unchanged from their June projections. The Brent price forecast stands at $83.51 per barrel, while the WTI forecast remains at $78.51 per barrel.
In recent trading, August WTI oil reached $74.64 a barrel on the New York Mercantile Exchange, representing a gain of $1.65 or 2.3%. Meanwhile, September Brent crude rose $1.52 or 2% to $79.21 a barrel on ICE Futures Europe.