EIA raises oil price forecasts for 2016, 2017
The U.S. Energy Information Administration raised its forecasts for this year and next on West Texas Intermediate and Brent crude prices in a monthly report issued Tuesday. The government agency said it expects WTI prices to average $34.60 a barrel this year. It previously forecast a 2016 average of $34.04. The EIA also said it expects Brent crude to average $34.73 a barrel this year, compared with a previous forecast for $34.28. For next year, the EIA sees Brent and WTI both averaging $40.58. May WTI oil traded at $41.56 a barrel, up $1.20, or 3%, on the New York Mercantile Exchange, buoyed by a report of a Saudi-Russian deal to freeze output. June Brent crude on ICE Futures added $1.47, or 3.4%, to $44.30 a barrel.
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