Recent OPEC Meeting in Algiers May Not Be a Game Changer
14 oil producing nations agreed to modestly reduce oil output later this year in the hope of propping up oil prices. The decision is reported to have increased global oil prices by more than 5%. However, the energy Information Administration’s (EIA) Short-Term Energy Outlook, released in September, warns of continued uncertainty in oil prices. EIA projects Brent crude oil prices to average $43 bbl in 2016 and $52 bbl in 2017. West Texas Intermediate crude oil prices are predicted to average $1 bbl less than Brent in 2017. The EIA outlook projects that US crude oil will average 8.8 MMbpd in 2016 and 8.5 MMBpd in 2017.