Market Speak: EIA cuts oil price forecast for third straight month amid glut fears

The US Energy Information Administration slashed its oil price forecast for the third consecutive month, projecting Brent to average $61 per barrel in 2024, down $1 from May?s outlook. In its June Short-Term Energy Outlook, the EIA cited persistent supply glut concerns driven by rising Opec+ output and weaker demand linked to US-led tariffs. Brent prices dropped to $64 in May, marking a fourth straight monthly decline. While US crude production reached a record 13.5 million barrels per day in Q2, the EIA expects output to ease to 13.3 million bpd by late 2026 due to falling rig activity and lower prices.

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