EIA Raises Oil-Price Forecasts as War in Middle East Continues
Why it matters: Higher oil prices will increase costs for consumers and businesses, impacting global inflation and economic growth.
- EIA raised its 2024 Brent crude forecast by $2 to $87 per barrel and its 2025 forecast by $1 to $85 per barrel.
- OPEC+ production cuts are expected to keep global oil inventories low, contributing to higher prices.
- Asian stocks were in a sober mood, with Reuters reporting investor concerns over Middle East truce doubts pushing oil prices higher.
The EIA has increased its oil price forecasts for 2024 and 2025, now expecting Brent crude to average $87 and $85 per barrel respectively, driven by ongoing Middle East conflict and OPEC+ production cuts. This upward revision comes as Asian stocks reflect a somber mood, with investors reacting to doubts about a Middle East truce and the subsequent rise in oil prices.
