U.S. Increases 2011 Crude Oil Price, Demand Estimates
Source: Bloomberg, Mark Shenk (11/9/10)
"The Energy Department expects U.S. economic growth, fuel consumption."
West Texas Intermediate oil, the U.S. benchmark, will average $85.17 a barrel next year, up from last month’s forecast of $83, according to the department's monthly Short-Term Energy Outlook, released today. Prices in 2010 will average $78.80, $0.83 higher than October's estimate of $77.97.
The department raised its outlook for global oil consumption next year to 87.77 million barrels a day from 87.44 million last month.
U.S. gross domestic product will grow 2.2% in 2011, up from projections of 2.1% a month ago, according to the report. The economy of the world's biggest-oil consuming country will climb 2.6% in 2010, which is unchanged from last month's estimate.
Demand for crude oil will climb 2.4% to 86.33 million this year, according to the report. The 2010 forecast was increased by 270,000 barrels from last month's projection.
U.S. oil consumption will average 19.16 million barrels a day next year, up 80,000 barrels from last month's forecast. This year's projection was bolstered by 70,000 barrels from the October report.