EIA lowers oil production forecast, hikes demand estimate

U.S. Energy Information Administration sees higher global demand.

Headlines from the EIA monthly forecast.

• Raises 2015 and 2016 world demand growth forecasts by 60,000 bpd each
• Lowers 2015 crude production growth forecast to 550,000 bpd from 700,000 previously
• Lowers 2016 world crude production growth forecast to 80,000 bpd from 140,000 bpd previously
• Raises US domestic demand forecast for 2015 to 330,000 from 310,000 bpd
• Raises US domestic demand forecast for 2016 to 90,000 from 70,000 bpd

Bullish for oil but it still shows oil production growing in a low price environment. Demand is higher but not enough to soak up all the excess supply.

Update: EIA: If Iran sanctions are lifted crude prices could be lowered by $5-$15. Iran believed to hold at least 30 million barrels in storage, could ramp up production by at least 700,000 bpd by end of 2016.

The Iran headlines threaten to steal this story. Those are some bearish figures.