The EIA short term energy outlook is out and they see demand increasing

The EIA is out with its recent short-term energy outlook:

• Raises forecast for 2024 world oil demand, now seeing a 1.10 million BPD year-over-year increase.
• Raises 2025 forecast for world oil demand growth by 300,000 BPD, now seeing a 1.80 million BPD year-over-year increase.
• Raises forecast for 2024 US oil production by 10,000 BPD. Now expects output to grow by 320,000 BPD year-over-year to 13.25 million BPD.
• Raises forecast for 2025 US oil production by 60,000 BPD. Now expects output to grow by 520,000 BPD year-over-year to 13.77 million BPD.
• Raises forecast for 2024 US oil demand by 100,000 BPD. Now expects demand to grow by 200,000 BPD year-over-year to 20.4 million BPD.
• Keeps forecast for 2025 US oil demand unchanged at 20.6 million BPD, with a 200,000 BPD growth over 2024.
• Lowers forecast for 2024 world oil production by 200,000 BPD. Now expects output to grow by 600,000 BPD year-over-year to 102.4 million BPD.
• Lowers forecast for 2025 world oil production by 100,000 BPD, now expecting output to grow by 2.2 million BPD year-over-year to 104.6 million BPD.

On the price side:

• Raises 2024 WTI price forecast to USD 82.03 per barrel (previously USD 79.70).
• Raises 2025 WTI price forecast to USD 83.88 per barrel (previously USD 80.88).
• Raises 2024 Brent price forecast to USD 86.37 per barrel (previously USD 84.15).
• Raises 2025 Brent price forecast to USD 88.38 per barrel (previously USD 85.38).

The price of crude oil remains under pressure despite the projections. The price is down for the 3rd consecutive day after the price tested a downward sloping trend line last week. The next targets come in near $80.62 and then the 100 day MA at $80.34.

This article was written by Greg Michalowski at www.forexlive.com.