EIA sees Brent oil prices falling to less than $60/bbl in Q4

Aug 12 (Reuters) - The U.S. Energy Information Administration on Tuesday forecast Brent crude oil spot prices will average less than $60 per barrel in the fourth quarter, which would be the first quarter with average prices that low since 2020.

It said in its August Short Term Energy Outlook (STEO) that it also expects Brent to average near $50 per barrel through 2026. The global benchmark LCOc1 settled at just above $66 on Tuesday.

The statistical arm of the U.S. Department of Energy forecast a significant decline in oil prices as growth in the global supply of oil vastly surpasses growth in demand for petroleum products.

"There’s a lot of uncertainty in the petroleum market. In the past, we have seen significant drops in oil prices when inventories grow as quickly as we are expecting in the coming months," said EIA Acting Administrator Steve Nalley.

U.S. crude production will hit a record 13.41 million barrels per day in 2025 due to increases in well productivity, though lower oil prices will prompt a fall in output in 2026, the EIA forecast.

Lower oil prices will lead to lower U.S. retail prices for gasoline and diesel and will pull domestic oil production down from the record highs in 2025, the EIA predicted.