HOUSTON, June 6 (Xinhua) -- The U.S. Energy Information Administration (EIA) on Tuesday forecasted lower global oil production and higher Brent spot oil prices through 2023 and 2024, while predicting the U.S. economy would expand but down from its earlier forecasts.
Following the OPEC+ announcement on Sunday to extend crude oil production cuts through next year, the EIA, in its Short-Term Energy Outlook (STEO) monthly report, predicted that global oil inventories will fall slightly in each of the next five quarters.
"These draws will put some upward pressure on crude oil prices, notably in late-2023 and early-2024," said the STEO report.
Despite the recent weakness in oil prices during last month, with an averaged 76 U.S. dollars per barrel(b), the EIA said it now expects that the Brent crude oil price will increase from an average of 79 dollars/b in the second half of 2023, one dollar/b higher than its May forecast, to an average of 84 dollars/b for 2024, nine dollars/b higher than in its May estimate.
Based on the S&P Global macroeconomic model for the U.S. economy and the EIA energy price forecasts, the report assumes U.S. GDP growth of 1.3 percent in 2023 and 1 percent in 2024, down from last month's forecast of 1.6 percent and 1.8 percent, respectively.
The EIA is the statistical and analytical agency within the U.S. Department of Energy. ■