On Tuesday, February 10th, the US Energy Information Administration (EIA) released its latest Short-Term Energy Outlook report, raising its forecasts for US oil production this year and next, while keeping its US oil demand forecast unchanged. The agency stated that global oil production growth is expected to outpace demand during the period forecast by the EIA, extending to the end of 2027, thereby increasing inventories and putting downward pressure on prices.

The EIA report raised its US oil production forecasts for this year and next, while maintaining its demand forecast, and anticipates that global oil production growth will exceed demand, leading to increased inventories and significantly downward pressure on crude oil spot prices. The increased risk of oversupply and bearish market sentiment may trigger a price correction.

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