The U.S. Energy Information Administration (EIA) has slightly increased its forecast for Brent crude oil prices in 2025, despite expectations of growing global stockpiles.
According to the agency’s latest Short-Term Energy Outlook (STEO) release , the average price for Brent crude this year is projected at $65.97 per barrel, up modestly from the previous estimate of $65.85. Similarly, the forecast for West Texas Intermediate (WTI) crude has been revised upward to $62.33 per barrel from $61.81.
The report highlights that May marked the fourth consecutive month of declining oil prices, driven by a slowdown in global demand growth and an accumulation of inventories, primarily due to increased production by OPEC+ members.
EIA analysts expect global oil supply to outpace consumption throughout the year, resulting in stock builds and downward pressure on prices. Inventories, which have already risen in the first five months, are forecasted to increase by an average of 800,000 barrels per day (bpd) over 2025, reflecting reduced demand in OECD countries and expanded output from both OPEC+ and non-OPEC producers.
Looking ahead to the second half of the year, the agency anticipates a moderation in supply growth, particularly as U.S. production—the world’s largest oil producer—levels off, while global demand picks up. This dynamic is expected to drive a drawdown in inventories averaging 600,000 bpd in 2026, signaling a move toward market balance.
The EIA projects the average Brent price will ease to $59.24 per barrel next year, with WTI prices falling to $55.58 per barrel.
However, the outlook remains clouded by uncertainties. Risks include wildfires in Canada, ongoing geopolitical tensions such as the Russia-Ukraine conflict, potential disruptions to Libyan exports, and the coordinated production policies of the OPEC+ group. Additionally, U.S. trade sanctions targeting Iran, Russia, and Venezuela continue to pose potential supply risks.
U.S. Production Outlook Upgraded
The report also raised U.S. crude oil production forecasts, projecting daily output of approximately 13.42 million barrels in 2025, up from the previous forecast of 13.21 million barrels. For 2026, U.S. production is expected to average 13.37 million barrels per day.
On the global front, oil supply is projected at 104.35 million bpd for 2025, with consumption slightly lower at 103.53 million bpd. In 2026, supply is expected to rise to 105.14 million bpd, outpacing demand projected at 104.58 million bpd.
Brazil's President Luiz Inacio Lula da Silva won the presidential runoff vote on Sunday, the...
Iran's Supreme National Security Council says senior officials from S...
Serbia's Aleksandar Vucic has conceded defeat to the student-led protest movement in parliamentary elections o...
Around 11,000 people joined a demonstration in Orléans on Saturday against the National Rally congress, according to the local prefecture.
Typhoon Champi swept past Taiwan on Saturday, leaving one person dead and more than 500 injured as strong winds and torrential rain brought down trees, cut power and disrupted transport across the island.
Israeli forces have maintained a tight closure on Hebron in the occupied West Bank for a second day, with Palestinian media reporting home raids, mass detentions and dozens of residents forced outside following a shooting incident the day before.
Uzbekistan summoned Iran’s ambassador following claims by several Iranian diplomatic missions that the historical and architectural heritage of Samarkand belongs to Persian or Iranian-Islamic civilisation, Tashkent's Foreign Ministry said.
German police have detained a suspect after a major fire broke out at the historic Kehlsteinhaus, known as the “Eagle’s Nest”, a mountain retreat once used by senior Nazi officials, including Adolf Hitler.
Kazakhstan marks Republic Day on 25 October with an ambitious economic agenda and a growing partnership with Azerbaijan, as the two Caspian neighbours pursue a $1 billion annual bilateral trade target and expand cooperation in transport, energy and digital infrastructure.
Azerbaijan's economy is forecast to grow by 1.7 per cent in 2026 and 2.3 per cent in 2027, according to the International Monetary Fund (IMF), while growth across the wider Caucasus and Central Asia region is expected to slow.
As fuel prices surge nearly 37 per cent and protests over living costs turn violent, French President Emmanuel Macron is seeking fresh energy supplies and partnerships in the Gulf. But can diplomacy abroad ease mounting pressure at home?
Azerbaijan and Georgia are targeting more than $2 billion in bilateral trade as the neighbouring countries strengthen energy partnerships, expand transport links and pursue new investment opportunities.
More than 200 U.S. business leaders have joined Secretary of State Marco Rubio in Uzbekistan as Washington steps up efforts to turn closer diplomatic ties with Central Asia into trade and investment deals.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment