U.S. Energy Information Administration Adjusts Oil and Gas Price Forecasts

The U.S. Energy Information Administration (EIA) has released its monthly report, revising its predictions for benchmark oil prices and U.S. natural gas. According to the EIA, there will be a reduction in forecasted prices for both domestic and global markets in 2024.

Oil Price Adjustments

The EIA now expects Brent crude to average $82.57 per barrel in 2024, marking an 11.4% decrease from the previous November forecast. Additionally, the agency has lowered its projection for West Texas Intermediate crude prices by 12.5%, setting the new forecast at $78.07 per barrel.

Natural Gas Forecast

In terms of U.S. natural gas, the EIA predicts a decrease in prices for 2024. The government agency anticipates prices to reach $2.79 per million British thermal units (BTUs), down 14.3% from its previous forecast.

Market Impact

The adjustment in forecasts has had a noticeable effect on oil prices, as they continue to decline. On the New York Mercantile Exchange, January WTI crude experienced a 4.1% drop, amounting to a decrease of $2.91 per barrel and reaching $68.41. Similarly, February Brent crude on ICE Futures Europe saw a 3.7% dip, down $2.79 to $73.24 per barrel. As for January natural gas on Nymex, it traded at $2.363 per million BTUs, signifying a decrease of 2.8%.

Overall, the EIA's latest report suggests a downward shift in oil and natural gas price expectations for 2024.