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EIA expects oil to average $104 for rest of this year, around $100 next year

Crude oil prices increased the first three weeks of July as world oil markets tightened because of seasonal upswings in world consumption plus unexpected supply disruptions and uncertainty over unrest in Egypt, the EIA of the U.S. Department of Energy noted.

The Trucker News Services

8/8/2013

Although for numerous reasons crude oil prices averaged $108 per barrel during the first half of this year, the U.S. Energy Information Administration expects the price to average $104 the rest of the year and $100 a barrel in 2014.

The EIA made the prediction in its most recent Short-Term Energy Outlook.

Crude oil prices increased the first three weeks of July as world oil markets tightened because of seasonal upswings in world consumption plus unexpected supply disruptions and uncertainty over unrest in Egypt, the EIA of the U.S. Department of Energy noted.

EIA also said it expects the discount of West Texas Intermediate crude oil to Brent crude oil, which had a monthly average of $21 per barrel in February and averaged $3 per barrel for July, to widen to $6 per barrel by the end of this year as crude oil production in Alberta, Canada, recovers from early June flooding “and as midcontinent production continues to grow.”

The strong demand for light, sweet crude oil in the Midwest and new pipeline capacity to deliver production from the West Texas Permian Basin directly to the Gulf Coast contributed to the price of WTI rising relative to Brent crude, EIA said.

EIA expects U.S. total crude oil production to average 7.4 million barrels a day this year and 8.2 million barrels a day next year, both about 0.1 million barrels-a-day higher than was forecasted last year.

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