EIA cuts Brent,WTI2019forecasts nearly$11/b amid supply glut The US Energy Information Administration on Tuesday reduced its forecasts for WTI and Brent spot prices in2019by nearly$11/b,largely due to record global output,particularly in the US,and lower-than-expected demand.
In its Short-Term Energy Outlook,EIA forecast WTI to average$54.19/b in2019,down$10.66/b from the agency's forecast last month,and Brent to average$61/b in2019,down$10.92/b from last month's forecast.
The dramatically reduced price forecast comes after Brent traded within a range around$17.49/b in November,its most volatile month since2012,and WTI traded in a range around$15.98/b,its most volatile month since2014.
"The implied volatility of Brent and WTI,calculated from options prices,more than doubled during the month,reflecting the market's heighteneduncertainty regarding future oil supply and demand,"EIA said.