EIA Raises U.S. Oil Output Forecasts For This Year And 2017

The U.S. Energy Information Administration on Tuesday raised its forecasts for U.S. crude production for 2016 and 2017. In its monthly energy outlook report, the government agency forecast U.S. crude output of 8.84 million barrels a day this year, up 1.3% from the previous forecast. For 2017, it sees production rising to 8.73 million barrels a day, up 1.7% from last month's forecast. The EIA also forecast an average price of $42.84 a barrel for West Texas Intermediate crude this year, up from a previous estimate of $42.78. Brent crude is seen averaging $43.30 this year, down from the $43.43 forecast in October. December WTI crude traded at $45.26 a barrel, up 37 cents, or 0.8%. December Brent crude added 14 cents, or 0.3%, to $46.29 a barrel.