EIA Cuts Brent and WTI Oil Price Forecasts for 2023 as Recession Fears, Inflation and Banking Crisis Overshadow OPEC's Production Cuts

The U.S. Energy Information Administration (EIA) said on May 9 that pessimism about a weak global economy, inflation and continued turmoil in the banking industry overshadowed concerns about OPEC's production cuts, dragging down the outlook for crude oil, gasoline and diesel prices.

In its short-term energy outlook for May, the EIA lowered its forecast for the average price of Brent crude oil in 2023 by US$6.36/barrel to US$78.65/barrel, much lower than its forecast of US$85/barrel in April. Similarly, the agency predicts that WTI crude oil will average $73.62 a barrel in 2023, $5.62 lower than last month's estimate.

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