Energy Information Administration forecasts a downward adjustment in the oil prices in the second quarter of 2020
- Journalist: Patrick Knight
EIA has forecast that the oil prices will decrease in the second quarter of 2020. It is expected to decrease to $57 per barrel from $63 per barrel in September. The reason for these estimates is the rise in the inventory prices of oil globally during the first half of 2020. This ultimately affects the economic growth and the oil demand in the coming quarters. EIA also estimates that the average crude oil production is down by 1.6 million BPD from 28.2 million BPD in August. The full year crude oil production in 2019 is expected to be down by 2.1 million BPD to 29.8 million BPD from 2018. Thus, greater risks in oil supply are expected in 2020.