US Energy Information Administration cautioned that its forecasts remain highly uncertain, and it would continue exploring the market dynamics in the energy sector.
- At the end of 2023, EIA anticipates prices to average $84.22 per barrel, with the low end of expectations of $37.39 and the high end of $189.70 per barrel.
- EIA’s outlook expects domestic production to average 12 million barrels per day this year, an increase of 800,000 barrels per day from last year.
- US production is projected to expand another 900,000 barrels per day in 2023 to average nearly 13 million barrels per day, topping the prior record annual average of 12.3M bpd set in 2019.
- Continued pain at the pump was in the outlook as the agency expects the average price of gasoline and diesel will be the highest since the summer of 2014.
Retail gasoline is projected to average $3.84 per gallon from April through September, up from$3.06 last summer. Diesel prices are projected to average $4.57 during the summer.
USOIL up +1.12%, CL! up +1.37%
Source: EIA