EIA worsens oil prices forecasts in 2016

The Energy Information Administration (EIA) has lowered the oil price forecast for the current year by more than 20%. WTI price will average $38.54 a barrel in 2016 and $47 a barrel in 2017. Brent price will average $40 a barrel in 2016 and $50 a barrel in 2017.

Consumption is projected to average 95.19 million barrels a day this year and 96.61 million barrels a day next year. The EIA also said international petroleum supplies would average 95.93 million barrels a day in 2016.

"Due to low oil prices,  US crude oil production will fall by around 700,000 barrels a day this year, the first annual decline since 2008," Interfax cited the statement as saying.