The US EIA.gov released their “Short-term Outlook” Forecast today, June 9, 2019. I skimmed over it briefly, and noticed that they did not make large revisions in their June Forecast as compared to their previous months Forecasts. Of course all things are subject to change, hence the EIA’s ongoing monthly “Short-term Outlook” Forecasts
I see it as a positive that the EIA’s 2020 and 2021 Forecasted “Average” Price of Crude Oil Specifically, WTI and Brent did Not Decline on their June 2020 Short-term Outlook. Could the “Worst be over with” as someone suggested during this past Saturday’s OPEC meeting?
May’s STO Average Price Summary for WTI for 2020 $30.10/bbl and 2021 $43.31/bbl.
June’s STO Average Price Summary for WTI for 2020 $35.14/bbl and 2021 $43.88/bbl.
May’s STO Average Price Summary for Brent for 2020 $34.13/bbl and 2021 $47.81/bbl.
June’s STO Average Price Summary for Brent for 2020 $38.02/bbl and 2021 $47.88/bbl.
The EIA now expects global oil inventories will begin declining in June 2020 a month earlier than previously forecasted. “Oil Prices rose in May as initial data show global oil demand higher than the EIA had forecast, and as adherence to announced Production cuts by OPEC & partner countries (OPEC+) was high.”
OPEC/OPEC+ seems serious about their Production Cuts, and US Shale Production is forecasted by the EIA to continue to decline through 2021. This should help decrease the oil glut, thereby increasing crude oil pricing.
I’m hopeful the EIA’s July Short-term Outlook will reflect even better numbers, and this will continue through the end of 2020 and 2021. With all things continuing on their path to a RECOVERY, I expect things to improve.
Source: EIA.gov ( The US Energy Information Administration)
Smith
This is my personal perspective so please do not base your investment decisions off any message board posts.
