The U.S. Energy Information Administration (EIA) raised its Brent oil price forecast for 2019 and 2020 by $5 per barrel this week.
Brent oil is now expected to average $70 per barrel in 2019 and $67 a barrel in 2020. The upward revision is due to the administration’s anticipated decline in OPEC crude oil production through 2020.
The EIA said it forecasts that OPEC’s crude oil output will average 30.3 million barrels per day (mbpd) in 2019 (down 1.7 mbpd from 2018) and fall further in 2020 to 29.9 mbpd.
US crude production forecast revised up
The EIA also revised up the U.S.’ crude oil production forecast for both 2019 and 2020 to 12.45 mbpd in 2019 and 13.4 mbpd in 2020.
The U.S.’ output of crude rose to 11.7 mbpd in November 2018 to overtake Russia as the world’s largest crude oil producer.
Crude oil production in the country increased to a new record high level of 12.3 mbpd for the week ending April 26, according to the EIA data.