HOUSTON, Dec. 10 (Xinhua) -- The U.S. Energy Information Administration (EIA) on Tuesday forecast that Brent spot prices will be lower on average in 2020 than in 2019 due to forecast of rising global oil inventories, particularly in the first half of next year.
In its December Short-Term Energy Outlook (STEO), EIA forecast Brent spot prices will average 61 U.S. dollars per barrel in 2020, down from a 2019 average of 64 dollars per barrel, while West Texas Intermediate (WTI) prices will average 5.50 dollars per barrel less than Brent prices in 2020.
One month ago, in its November STEO, the agency forecast Brent spot prices would average 60 dollars per barrel in 2020.
The latest forecast was issued after the Organization of the Petroleum Exporting Countries (OPEC) and a group of other oil producers announced they were deepening production cuts originally announced in December 2018.
On Dec. 6, the main oil producers decided to target production that is 1.7 million barrels per day lower than in October 2018, compared with the former target reduction of 1.2 million barrels per day.
OPEC announced that the cuts would be in effect through the end of March 2020. However, EIA assumed that OPEC will limit production through all of 2020, amid a forecast of rising oil inventories.
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