12/07/2021 | Press release | Distributed by Public on 12/07/2021 12:21
U.S. ENERGY INFORMATION ADMINISTRATION
WASHINGTON DC 20585
FOR IMMEDIATE RELEASE
December 7, 2021
The U.S. Energy Information Administration (EIA) forecasts that global oil production will increase more quickly than demand in 2022, pushing crude oil and petroleum product prices lower than in late 2021. Brent crude oil prices averaged $81 per barrel in November, but they closed the month at $70 per barrel.
In its December Short-Term Energy Outlook (STEO), EIA forecast Brent crude oil prices will average $70 per barrel in 2022.
Responses to the new COVID-19 Omicron variant could lead to a decline in demand for petroleum products in the near term.
"This is a very complicated environment for the entire energy sector," said EIA Acting Administrator Steve Nalley. "Our forecasts for petroleum and other energy prices, consumption, and production could change significantly as we learn more about how responses to the Omicron variant could affect oil demand and the broader economy."
The STEO forecast also reports that the release of crude oil reserves by the United States and other countries may have contributed to the decrease in Brent crude oil prices in November, and that decrease could contribute to lower prices in 2022.
Other key takeaways from the latest STEO:
The entire Short-Term Energy Outlook is available on the EIA website.
EIA Program Contact: Tim Hess, [email protected]
EIA Press Contact: Chris Higginbotham, [email protected]