Energy Department Forecasts Tight Global Oil Market
WASHINGTON, D.C. --- The Energy Department's Energy Information Administration (EIA) released its latest "Short-Term Energy Outlook" report last week, forecasting a continuing tight global oil market. "In looking ahead, based on the trends observed, EIA has consistently projected a decline in inventories relative to their average pattern over the second half of 2007 and into 2008, and this projection continues in this month's outlook," EIA said. "Analysts could focus on the forecast for oil prices and make much ado about whether the price is averaging over $70 per barrel for much of the forecast (as it does in this month's forecast) or if the forecast calls for prices declining to below $70 per barrel (as it has been projected in some other recent editions). But what may be more useful for those wanting to understand EIA's expectations for the global oil market over the short-term is the consistent story of declining inventories, relative to their expected pattern for 2007 and 2008, and thus a tight market."