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

Published: May 12, 2023 17:26

Save

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.

More popular news

CITI Research Lowers Price Forecast for Nickel, Aluminium and Zinc in 2023-2024 But Bets on Higher Copper Prices

Chinese Lithium Giant Denies Rumours, More Players Extend Industry Chain to Downstream Automakers

Goldman Sachs: China will be the only major economy with positive growth this year, bullish bets on new energy vehicles and biotechnology in the long run

Key April Chinese Economic Data Are Released, Including Real Estate Investment, Industrial Added Value and Consumer Goods Retail Sales

SMM Comment: SHFE And LME Base Metals Mostly Rise, Ferrous Metals And Crude Oil Also Outperform, US Dollar Softens

China’s Central Bank Releases Key April Economic Data: RMB Loans Issued to the Real Economy, Newly-Added Social Financing, Newly Added RMB Loans, Balance of M2, M1 and M0, All Recording Enormous Growth

IMF: Asia-Pacific To Contribute More Than 70% To Global Economic Growth, With China Being Key Engine

Dollar, Oil, Gold, Base Metals, Ferrous Metals All Go Down, EIA Cuts Oil Price Forecast

IMF: Western Sanctions against Russia Are Ineffective, European Economy Faces Multiple Challenges

Chinese Property Market Still In Downturn, But On Track To Recover With Improving Economy And Favourable Policies, National Bureau Of Statistics Says

China To Actively Expand Domestic Effective Demand And Boost New Energy Vehicle Sales, National Development And Reform Commission Says

Goldman Sachs, Barclays warn: Fed will not cut interest rates this year

Balance of M2, M1 and M0 All Rise at the End of April, China’s Central Bank Says

India to become Europe’s top supplier of refined oil products after massive purchases of Russian oil

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

Morgan Stanley, Goldman Sachs and BoA Are Pessimistic, Here Is Why

Global Chip Market Will Decline 20% This Year

Domestic Steel Scrap Prices Plummeted In April

Investment Tycoon Charlie Munger Warns A Storm Is Brewing In US Commercial Property Market And The Golden Age Of Investment Is Over

Chile’s Latest Move Marks One Step Closer to the Establishment of Lithium Version of OPEC

Sunwoda's "Flash Charge Battery" Can Power Electric Cars 1,000 Kilometres on A Single Charge

Massive Aluminium Capacity In China To Be Resumed Or Put Into Operation In H2 2023

"No One Understands Global Economy Better Than I Do"! Tesla CEO Musk Warns of Severe Recession Looming Large

Accelerating RMB Globalisation Threatens Dollar’s Dominance

Market forecast

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

8 hours ago

EU Considers Ban on Russian Metals Imports, Aiming to Intensify Sanctions

【SMM News Flash】The European Union is considering further intensifying trade sanctions against Russia. Market sources revealed that the EU is contemplating a ban on imports of Russian platinum group metals and copper as part of new sanctions measures. Market sources indicated that, if the restrictions gain support from member states, they may cover elements such as iridium, rhodium, platinum, and copper. EU sanctions require unanimous approval from all member states, and the new package is expected to be adopted this month.

8 hours ago

【SMM News】Viscaria Copper Mine to Resume in Kiruna by 2028, Boosting Europe's Fastest-Growing Copper Deposit

【SMM News Flash】With the Viscaria copper mine expected to resume operations by 2028, copper mining activities are returning to Kiruna, the northernmost town in Sweden. The Viscaria copper mine operated from 1983 to 1997, initially managed by the state-owned iron ore mining company LKAB and later taken over by Outokumpu. Although the Viscaria copper mine is a brownfield site, Jorgen Olsson, CEO of Viscaria, stated that it is one of the fastest-growing copper deposits in Europe, and ongoing exploration has uncovered additional mineral resources beneath the mine.

8 hours ago

Naipu Mining (300818) Abandons Alacran Mine Investment, Terminates Veritas Resources AG Share Subscription

【SMM News Flash】Naipu Mining Machinery (300818) announced on February 3 that the company held a board meeting that day and reviewed and passed the "Proposal on Terminating the Subscription of Shares of Veritas Resources AG, Switzerland," agreeing to abandon its investment in the Alacran copper-gold-silver mine project in Colombia. The termination of participation in the subscription was based on changes to the originally agreed closing preconditions and other terms. The company did not commit any breach of contract and therefore is not liable for any breach of contract obligations.

8 hours ago