The U.S. Energy Information Administration said on Thursday that it expects global oil inventories to continue building into 2017.
The agency said in its most recent short-term energy report that it expects global oil inventory builds to average 0.7 million barrels per day in 2016 and 0.3 million bpd in 2017.
U.S. crude oil production averaged 9.4 million bpd in 2015 and is currently forecast to average 8.7 million bpd in 2016.
U.S. commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, increased by 4.9 million barrels during the week ending on October 7.
The gains pushed U.S. crude inventories up to 474 million barrels, a “historically high levels for this time of year,” the EIA said.
U.S. crude production is forecast to hit 8.6 million bpd in 2017, up by nearly 100,000 bpd from the agency’s previous forecast.
Brent crude oil prices are forecast to average $43 per barrel in 2016, $1 per barrel higher than the agency’s previous forecast.
The EIA projects Brent crude prices to average $51 per barrel in 2017, $1 per barrel lower than the agency’s previous forecast.
West Texas Intermediate crude oil prices are forecast to average about $1 per barrel less than Brent prices in 2016 and in 2017.
“The current values of futures and options contracts suggest high uncertainty in the price outlook,” the agency said.
Natural gas marketed production fell from 79.7 billion cubic feet per day (Bcf/d) in September 2015 to 76.5 Bcf/d in July 2016.
The EIA expects marketed natural gas production to average 77.5 Bcf/d in 2016, a 1.6 percent year-over-year decline.
That decline would be the first annual drop since 2005, the agency said.
Natural gas marketed production is then expected to increased by 3.7 Bcf/d in 2017
The EIA projects average U.S. household expenditures for natural gas, heating oil, electricity and propane will increase this winter compared with last winter.