The U.S. Energy Information Administration cut its crude price forecasts by $15 a barrel after OPEC’s decision last month to maintain output as North American oil output increases. The agency reduced its 2015 U.S. oil production outlook for a second month.
West Texas Intermediate will average $62.75 a barrel in 2015 versus the November projection of $77.75, the EIA said today in its monthly Short-Term Energy Outlook. The agency trimmed its Brent crude estimate for next year to $68.08 from $83.42.
Prices have tumbled since the 12-nation Organization of Petroleum Exporting Countries decided Nov. 27 to maintain output levels, letting prices decrease to a level that may slow U.S. production growth. The decline in prices will start to affect U.S. production next year, EIA Administrator Adam Sieminski said in an e-mailed statement.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.