Crude prices retreat as EIA cuts price forecasts

Crude prices declined Wednesday as the U.S. Energy Information Administration (EIA) cut crude price forecasts.

EIA said in its short-term energy outlook report, the causes of recent price plunge included weakening outlooks for global economic and oil demand growth, the return to the market of previously disrupted Libyan crude oil production, and continued growth in U.S. shale production.

It predicted Brent crude oil prices will average 83 dollars next year, 18 dollars lower than forecast in last month's report.

EIA also said there is significant uncertainty over the crude oil price forecast because of the range of potential supply responses from the Organization of the Petroleum Exporting Countries (OPEC), particularly Saudi Arabia, and U.S. shale producers to the new lower oil price environment.

OPEC, which pumps a third of the world's crude output, will hold its next production meeting in Vienna, Austria, on Nov. 27.

Ali al-Omair, the Minister of Oil Kuwait on Monday said in Abu Dhabi this week that he did not expect OPEC to make any production cut in the meeting.

Light, sweet crude for December delivery moved down 76 cents to settle at 77.18 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery lost 1.29 dollars to close at 80.38 dollars a barrel.