EIA Short Term Energy Outlook Forecasts Dip in Crude Oil Prices

SEATTLE (Oil Monster): The U.S. Energy Information and Administration (EIA) predicts a further drop in crude oil prices in its May 2025 issue of the Short Term Energy Outlook (STEO) report.

The analysis predicts that the price of Brent crude oil would drop to $59 per barrel next year after averaging about $62 per barrel in the second half of this year.

According to the EIA, the average price of a barrel of Brent crude oil in April of this year was $68; this was $5 less than the previous month. This is the third month in a row that prices have dropped. The primary cause of the price decline was a decline in expectations for global demand after the imposition of additional U.S. tariffs.

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According to the report, pressure was further increased by the OPEC+ members' acceleration of their anticipated production increases. The EIA predicts that OPEC+ nations will increase their crude oil output by 0.1 million barrels per day this year.

According to the EIA, growing oil production will surpass yearly growth in oil demand, resulting in an increase in global oil stockpiles. Global oil inventories are predicted to increase by an average of 0.4 million barrels per day in 2025 and then accelerate to an average of 0.8 million barrels per day in 2026.

The EIA predicted that the average price of crude oil would be $68 per barrel in 2025 and $61 per barrel in 2026 in its last report.