U.S. ENERGY INFORMATION ADMINISTRATION
WASHINGTON DC 20585
FOR IMMEDIATE RELEASE
June 8, 2021
EIA expects Brent crude oil prices to stabilize then decline as global oil production increases
EIA forecasts in the June release of its Short-Term Energy Outlook (STEO) that global Brent crude oil prices will stabilize in mid-2021 and average about $68 per barrel (b) in the third quarter before decreasing to an average of $60/b in 2022. Brent crude oil prices averaged $68/b in May, a 25% increase from January’s average.
“In the coming months, we expect global oil production to catch up with the increases we’ve seen in demand in 2021,” said EIA Acting Administrator Stephen Nalley. “U.S. and global oil producers are increasing their production, which should help moderate oil prices that have increased significantly as global economic concerns about the COVID-19 pandemic have begun to ease.”
We expect global petroleum and liquid fuels consumption to grow by 6% in 2021, totaling 97.7 million barrels per day (b/d), and increase a further 4% in 2022, reaching 101.3 million b/d. In response to this increase in global demand, we forecast U.S. crude oil production will average 11.8 million b/d in 2022, up 4% from 2020. We expect OPEC production to reach 28.7 million b/d in 2022, an increase of 12% over 2020.
Also in the STEO:
- We expect U.S. regular retail gasoline prices to average $2.92 per gallon for the summer driving season, which runs April through September. We expect monthly average gasoline prices this summer to peak in June at $3.03 per gallon.
- We forecast an increase of 9 gigawatts of U.S. small-scale solar electricity capacity in 2021 and 2022.
- We revised our forecast of U.S. coal production in 2021 to 600 million short tons, a 3% increase from our May forecast, because we raised our forecast of coal exports and inventory levels.
The entire Short-Term Energy Outlook is available on the EIA website.
EIA Program Contact: Tim Hess, STEO@eia.gov
EIA Press Contact: Chris Higginbotham, EIAMedia@eia.gov