EIA forecasts oil averaging over $100 for a few quarters

[dan_s]

EIA expects crude oil prices higher than $100 per barrel in coming months.
"In our March 2022 Short-Term Energy Outlook (STEO), which was finalized on March 3, we increased our forecast price of international benchmark Brent crude oil to $116 per barrel (b) for the second quarter of 2022. We expect gasoline prices to average about $4.10 per gallon (gal) during the second quarter of 2022 and then decline through the rest of the year. We forecast that the price for WTI, the U.S. benchmark, will average $113/b in March and $112/b for the second quarter of 2022. Our forecast is subject to heightened levels of uncertainty due to various factors, including Russia’s further invasion of Ukraine, government-issued limitations on energy imports from Russia, Russian petroleum production, and global crude oil demand."

MY TAKE: EIA and IEA are now finally getting it that (a) this world is "short oil" and (b) this world will continue to run on oil, gas and coal for at least another decade. In my opinion, the oil price will go a lot higher in Q3 because the impact of sanctions on Russia will hit the market right at the time seasonal demand spikes.