Oil increased earlier this month as tensions between Iran and the United States flared after a US military strike that killed Iran's top military commander in Iraq. However, crude oil prices bounced back last week as tensions appeared to ease after a retaliatory strike from Iran aimed at bases hosting US troops in Iraq that resulted in no casualties.
Tensions between the US and Iran have eased, although the threat of new geopolitical unrest still exists.
A monthly report released on Tuesday said: "The Energy Information Administration has forecast an increase in WTI oil prices for 2020 to $59.25 per barrel, which is 7.7% higher than the forecast reached a month earlier. As for Brent oil, it will amount to an average of $64.83 in 2020, which is 7.1% more than in the previous forecast."
In a statement after the publication of the report, EIA Administrator Linda Capuano said that oil consumption in 2020 will grow, as supplies from non-OPEC producers, in particular in the United States, Norway, Brazil, and Canada, compensate for the decline in production in OPEC.
In 2020, the EIA will see total global production of oil and other liquids at 102.37 million barrels per day, and total global consumption at 102.11 million barrels per day.
Analysts expect that on Wednesday, the report will say that domestic commercial oil reserves will grow by 500,000 barrels, which will trigger the second weekly growth in a row. They also forecast shipments of about 3.3 million barrels for gasoline and 1.3 million barrels for distillates.
Reuters reported on Tuesday that OPEC+ may move its March meeting to June. If this happens, OPEC+ may extend the agreement to reduce oil production from the end of March to June.
The OPEC website currently marks March 5 for the OPEC extraordinary meeting and the OPEC+ meeting on March 6, with the next OPEC meeting scheduled for June 9 and the OPEC+ summit scheduled for the next day.
