EIA: Crude Oil Prices to Remain Low Through 2016 and 2017

The U.S. Energy Information Administration’s, EIA; www.eia.gov new “Today in Energy” brief looks at EIA’s forecast of low oil prices during 2016 and 2017, as global oil inventories are expected to continue increasing this year and through the first half of next year.

“Crude oil prices are expected to remain low as supply continues to outpace demand in 2016 and more crude oil is placed into storage. EIA estimates that global oil inventories increased by 1.9 million b/d in 2015, marking the second consecutive year of inventory builds. Inventories are forecast to rise by an additional 0.7 million b/d in 2016, before the global oil market becomes relatively balanced in 2017. The first forecasted draw on global oil inventories is expected in the third quarter of 2017, marking the end of 14 consecutive quarters of inventory builds.”—EIA

Source: U.S. Energy Information Administration, Short-Term Energy Outlook, January 2016
The “Today in Energy” brief was posted Wednesday on EIA’s website at: http://www.eia.gov/todayinenergy/detail.cfm?id=24532.