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MARKETS: EIA expects oil prices to remain under pressure after s


(EnergyAsia, November 28 2014, Friday) — The US Energy Information Administration (EIA) expects oil prices to remain under selling pressure after slashing its latest forecast for 2015 global demand while raising the supply outlook.

In its November report, the agency said it expects Brent crude oil spot prices to average US$83 per barrel in 2015, sharply down from its October forecast of US$101.

“There is significant uncertainty over the crude oil price forecast because of the range of potential supply responses from the Organization of the Petroleum Exporting Countries (OPEC), particularly Saudi Arabia, and US tight oil producers to the new lower oil price environment,” it said.

The EIA said it expects the world to consume 92.5million b/d, down from its previous month’s call for 92.71 million b/d. On the supply side, it expects world production to reach 92.91 million b/d, up from the October forecast of 92.67 million b/d.

As a result of this growing supply-demand imbalance, the EIA said the world’s oil stock build will reach 400,000 b/d in the fourth quarter of 2014 through 2015. It attributed the forecast for higher world oil production mostly to an upward revision of expected supply from Saudi Arabia. more...