EIA lowers price forecasts for WTI and Brent oil

The Energy Information Administration cut its 2023 and 2024 forecasts for U.S. and global benchmark crude-oil prices, according to the Short-Term Energy Outlook report.

"Ongoing considerations about weakening global economic conditions, perceived risk around the global banking sector, and persistent inflation outweighed the initial increase in oil prices and have led to lower prices," the report reads.

Still, the EIA expects "the seasonal rise in oil consumption and a drop in OPEC crude oil production to put some upward pressure on crude oil prices in the coming months."

The government agency reduced its 2023 forecast for West Texas Intermediate crude prices to $73.62 a barrel, down 7.1% from the April forecast. For 2024, it lowered its forecast by 7.6% to $69.47.

For Brent crude, it cut its 2023 forecast by 7.5% to $78.65 and its 2024 forecast by 8.3% to $74.47. In Tuesday dealings, June WTI crude oil was down 82 cents, or 1.1%, to $72.34 a barrel on the New York Mercantile Exchange. July Brent crude on ICE Futures Europe traded at $76.01 a barrel, down $1, or 1.3%.