The U.S. Energy Information Administration (EIA) expects a narrowing gap between supply and demand in U.S. oil markets this year but has also lowered its price forecasts, according to its short-term energy outlook report.

 The EIA raised its forecast for U.S. oil demand in 2024 by 100,000 barrels per day to 20.5 million barrels per day. It kept its global oil demand growth forecast for 2024 unchanged at 102.9 million barrels per day.

The EIA expects U.S. oil production to grow by 300,000 barrels per day this year to a record 13.23 million barrels per day, slightly below its previous estimate of 320,000 barrels per day.

Despite the market slowdown, the EIA cut its forecast for West Texas Intermediate (WTI) crude prices for the year to $80.21 per barrel, down 2.2% from its previous forecast of $82.03 per barrel.

 The EIA also lowered its global oil demand forecast for 2025 to 104.5 million barrels per day from a previous estimate of 104.7 million barrels per day.

OPEC maintained its relatively strong global oil demand growth forecasts for 2024 and 2025, citing that economic resilience and strong air travel would support fuel usage in the summer months.

OPEC’s latest report forecast that global oil demand would rise by 2.25 million barrels per day in 2024 and 1.85 million barrels in 2025, unchanged from last month’s forecasts.