The EIA also estimates that the difference between total world consumption and total world production averaged 400,000 barrels per day in 2017, marking the first year of global inventory draws since 2013.
But Fatih Birol, head of the International Energy Agency, warned on Friday that while oil prices at $65 to $70 per barrel are good for oil producers now, there is a risk that such a level would encourage more oversupply from USA shale drillers.
Brent crude futures settled at US$69.20 a barrel, up 38 cents. The president must regularly weigh sanctions and not extending them would've pulled the estimated 1 million barrels of Iranian oil flowing in the global market.
The price for Brent crude oil, the global benchmark, hit $70 per barrel for the first time since December 2014 partway through the trading day Thursday, but gave up almost all of the gains by the close.
USA energy companies added 10 oil rigs this week, the biggest increase since June, bringing the total rig count to 752, the most since September, General Electric Co's (GE.N) Baker Hughes energy services firm said.
"It was the typical market reaction as oil initially jumped due to the drop in oil inventories, then [it sank] in that gasoline stockpiles surged, which prompted selling". The head of Russian oil company Lukoil, Vagit Alekperov, meanwhile, said that if oil prices stay this high, the effort led by OPEC, but which includes Russia, will need to gradually come to an end.More news: Toronto Raptors give Cavaliers a taste of their own medicine
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US West Texas Intermediate crude futures were at $63.14 a barrel, down 66 cents. In particular, USA crude oil production is expected to increase more quickly than any other country. The price of Brent crude oil averaged $54/barrel (b) in 2017, an increase of $10/b from 2016.
"Inventories ended 2017 9.3 percent above the five-year average, a stark contrast to the 35.6 percent surplus seen at the end of 2016", Oil Futures Editor Geoffrey Craig said in a statement emailed to UPI.
United States commercial crude stocks fell by nearly 5 million barrels in the week to January 5, to 419.5 million barrels. "Supply disruptions and falling United States and global inventories have driven crude oil higher", said Ole Hansen, head of commodity strategy at Saxo Bank in a note.
EIA research shows that us gasoline prices tend to follow the price of the best grades of oil in Europe, more than they follow the price of the best USA crude.
"Oil prices have been undeniably bullish this week despite the lingering concerns over the current bull rally running out of steam". This is the first STEO to forecast through 2019 and it contains updates for 2018 forecasts.
The EIA said it expects the share of U.S. total utility-scale electricity generation from natural gas to rise from 32% in 2017 to 33% in 2018 and to 34% in 2019, as a result of low natural gas prices.