The US Energy Information Administration (EIA) raised its forecast on crude oil prices for this year in its short-term energy outlook report released Tuesday.

Global benchmark Brent crude is expected to average $55 per barrel (bbl) in 2017, up from $53.50 in the previous outlook report; and $57/bbl in 2018 compared to $56/bbl in the last report.

The West Texas Intermediate (WTI) crude is forecast to be about $1/bbl less than Brent prices in 2017.

The EIA forecast US crude production at an average 9 million barrels per day (mbpd) in 2017 climbing to 9.5 mbpd in 2018.

“EIA expects the oil market to be relatively balanced in 2017 and 2018,” the agency said.

Brent futures were trading lower on Wednesday and last were down 0.8 percent at $54.6/bbl. WTI crude was down 1.2 percent at $51.57/bbl.

AZERTAC