The EIA expects oil prices to fall this year and next

According to today's oil price website on January 12, the US Energy Information Administration (EIA) said in its short-term energy outlook (STEO) for January that the increase in global inventories will make oil prices lower
this year and next as supply growth exceeds demand growth.

Brent crude prices averaged $79/b in the fourth quarter of 2021, $75 in 2022 and $68 in 2023
, EIA said.

In its monthly outlook, the EIA said U.
S.
benchmark WTI crude is expected to average $71.
32 per barrel this year and $63.
50 per barrel next year
.

Earlier on Wednesday (Jan.
12), WTI crude was trading above $82 per barrel ahead of EIA's weekly inventory report, and Brent crude was trading above
$84 per barrel.
Earlier, Federal Reserve Chairman Jerome Powell said on Tuesday that the U.
S.
economy would only be affected in the short term by the surge in Omicron cases and was ready to start tightening monetary policy
.

According to EIA estimates, the global average consumed 1.
4 million barrels
per day of inventory last year as demand grew faster than supply.
However, demand growth will slow this year, while supply growth will accelerate, leading to an increase
in global oil inventories.

Global oil production is expected to increase by 5.
5 million b/d in 2022, driven by production growth in the United States, OPEC and Russia, and the three countries together will account for 84 percent of the increase, or 4.
6 million b/d
, EIA said.

At the same time, the U.
S.
government noted that global oil consumption will increase by 3.
6 million b/d
in 2022.

The EIA said inventories will increase by 500,000 b/d this year and an average of 600,000 b/d next year, putting downward pressure
on oil prices.

Last month, Goldman Sachs predicted that crude oil prices could reach $
100 in 2023 as demand growth outpaces supply growth.