The U.S.' Energy Information Administration (EIA) revised up its forecast of oil prices for 2018, according to its Short-Term Energy Outlook report for January released on Tuesday.
International benchmark Brent crude and American benchmark West Texas Intermediate (WTI) are both expected to average $3 per barrel higher this year, compared to the December report.
The EIA said it estimates Brent crude to average $60 per barrel this year, and anticipates WTI to average $56 a barrel.
In the December report, Brent was expected to average $57 a barrel, while WTI was forecast to average $53 per barrel.
'Most of the upward price movement in recent months reflects continuing draws in global oil inventory levels,' the EIA said in its January report.
However, 'the U.S. tight oil sector continues to be dynamic, and quickly evolving trends in this sector could affect both current crude oil prices and expectations for future prices,' the administration warned.
The EIA also revised up its expectation for the U.S.' crude oil output by 300,000 barrels per day (bpd).
Crude oil production in the U.S. is now forecast to average 10.3 million bpd this year, instead of the previous estimate of 10 million bpd.
The EIA anticipates U.S. crude oil output to average 10.8 million bpd in 2019, and surpass the 11 million bpd threshold in November 2019.
By Ovunc Kutlu in New York
Anadolu Agency
energy@aa.com.tr