EIA revises up oil price forecasts for 2021

In its March Short-Term Energy Outlook, the U.S. EIA forecast Brent crude oil prices will average $61/bbl in 2021 and $58.5/bbl in 2022, compared to previous forecasts of $53/bbl and $55/bbl, respectively, in last month's outlook.

In its March Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) forecast Brent crude oil prices will average $61/bbl in 2021 and $58.5/bbl in 2022, compared to previous forecasts of $53/bbl and $55/bbl, respectively, in last month’s STEO.

Brent crude oil spot prices averaged $62/bbl in February, up $8/bbl from January’s average and up $7/bbl from February 2020. Rising Brent prices in February continued to reflect expectations of rising oil demand as both COVID-19 vaccination rates and global economic activity have increased, combined with ongoing petroleum supply limitations by OPEC+. In addition, disruptions to petroleum supply from extreme winter weather in the U.S. put upward pressure on crude oil prices during February.