The US Energy Information Administration (EIA) warned in its January Short-Term Energy Outlook (STEO) that global inventory building owing to supply growth surpassing demand growth will push oil prices lower this year and next.
The following are some of the report’s highlights:
- Brent Crude prices are expected to average $75 per barrel in 2022 and $68 per barrel in 2023, down from $79 per barrel in the fourth quarter of 2021.
- WTI Crude, the American benchmark, is predicted to average $71.32 per barrel this year and $63.50 next year.
- Inventory withdrawals worldwide averaged 1.4 million barrels per day (bpd) last year due to higher demand growth than supply increases. However, demand growth is expected to decelerate this year, while supply is expected to accelerate, increasing global petroleum stockpiles.
- The world’s oil production is expected to expand by 5.5 million barrels per day (bpd) in 2022, owing to increases in production in the United States, OPEC, and Russia, which will account for 84% of the increase, or 4.6 million bpd. In addition, by 2022, global petroleum demand will have increased by 3.6 million bpd.
- Inventories are expected to rise by 500,000 barrels per day this year and 600,000 barrels per day next year, putting downward pressure on oil prices.
%20warned%20in%20its%20January%20Short-Term%20Energy%20Outlook%20(STEO)%20that%20global%20inventory%20building%20owing%20to%20supply%20growth%20surpassing%20demand%20growth%20will%20push%20oil%20prices%20lower%20this%20year%20and%20next.The%20following%20are%20some%20of%20the%20report's%20highlights:ul%20liBrent%20Crude%20prices%20are%20expected%20to%20average%20$75%20per%20barrel%20in%202022%20and%20$68%20per%20barrel%20in%202023,%20down%20from%20$79%20per%20barrel%20in%20the%20fourth%20quarter%20of%202021./li%20liWTI%20Crude,%20the%20American%20benchmark,%20is%20predicted%20to%20average%20$71.32%20per%20barrel%20this%20year%20and%20$63.50%20next%20year./li%20liInventory%20withdrawals%20worldwide%20averaged%201.4%20million%20barrels%20per%20day%20(bpd)%20last%20year%20due%20to%20higher%20demand%20growth%20than%20supply%20increases.%20However,%20demand%20growth%20is%20expected%20to%20decelerate%20this%20year,%20while%20supply%20is%20expected%20to%20accelerate,%20increasing%20global%20petroleum%20stockpiles./li%20liThe%20world's%20oil%20production%20is%20expected%20to%20expand%20by%205.5%20million%20barrels%20per%20day%20(bpd)%20in%202022,%20owing%20to%20increases%20in%20production%20in%20the%20United%20States,%20OPEC,%20and%20Russia,%20which%20will%20account%20for%2084%%20of%20the%20increase,%20or%204.6%20million%20bpd.%20In%20addition,%20by%202022,%20global%20petroleum%20demand%20will%20have%20increased%20by%203.6%20million%20bpd./li%20liInventories%20are%20expected%20to%20rise%20by%20500,000%20barrels%20per%20day%20this%20year%20and%20600,000%20barrels%20per%20day%20next%20year,%20putting%20downward%20pressure%20on%20oil%20prices./li/ul){kind=link}