The U.S. Energy Information Administration (EIA) lowered its forecast for crude oil prices for the year 2025 in a report released on Tuesday. The U.S. energy sector anticipates that oil prices—both Brent and West Texas Intermediate—will face downward pressure, primarily due to a buildup of inventories in the second half of next year.

As a result, according to the new forecasts, the average price of Brent crude is expected to be $73.58 per barrel in 2025, down 3.26% from the previous forecast of $76.06.

Additionally, the price of West Texas Intermediate crude is projected to be $69.12 per barrel in 2025, decreasing 3.46% from last month’s estimate of $71.60.

Furthermore, global crude oil production is expected to reach an average of 77.81 million barrels per day next year, with OPEC+ contributing 35.87 million barrels, the United States producing 13.52 million barrels, and non-OPEC+ countries (excluding the United States) contributing the remaining 28.41 million barrels.