EIA: STEO Sees Brent $56 bbl, WTI $52 bbl in 2026


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Global oil prices are expected to drop through 2027 as 
production outpaces demand, with benchmark Brent crude forecast to average $56 
bbl this year and $54 bbl next versus last year's $69 bbl, the U.S. Energy 
Information Administration said in its Short-Term Energy Outlook released 
Tuesday (1/13).

   A similar scale of decline was expected in U.S. crude, with WTI forecast to 
drop to $52 bbl this year and $50 bbl next, against the 2025 average of $65 bbl.

   The EIA expects global production of liquid fuels to increase by 1.4 million 
bpd this year and 0.5 million bpd in 2027. This year's growth is expected to be 
driven by OPEC+ output while that for next year will be led by production 
outside of OPEC+, primarily by South American countries.

   Meanwhile, U.S. output is expected to taper by 1% this year and by 2% in 
2027 from the record high of 13.6 million bpd averaged last year.

   "With sustained lower crude oil prices, we expect crude oil production will 
decrease as the slowdown in drilling activity will outpace increases in 
drilling productivity," the EIA added.

   U.S. fuel prices are expected to decline too, in line with the projected 
drop in crude prices. Retail gasoline is forecast to average $2.90 gallon this 
year and next, nearly 20cts lower than last year's average.

    

    

    

    




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