US EIA lowers forecast for 2016 oil prices yet again
In their monthly Short Term Energy Outlook, the EIA revised their 2016 forecast for Brent to just US$34/bbl for 2016 and US$40/bbl for 2017. The agency expects West Texas Intermediate and Brent to trade roughly at par.
Crude oil production is expected to come down to 8.7 million bbl/day in 2016, down from an average of 9.4 million bbl/day last year. The US produced an estimated 9.1 million bbl/day in January. The EIA also noted that power generated from natural gas will exceed coal this year for the first time in US history.