Photo: Benjamin Lowy/Getty Images

The Energy Information Administration's new monthly outlook cuts a lot — $11-per-barrel! — from their 2019 average oil price forecast. They now see Brent crude averaging $61 and WTI averaging $54.

Why it matters: Analysts are often playing catch up, and the big revision is a sign of how quickly the oil market can shift, as OPEC and Russia respond to the rise of U.S. shale and analysts weigh signs of softening global demand and other forces.

  • It also signals that EIA, for now, does not see the new OPEC+ production-cutting deal as putting much upward pressure on prices.

What they're saying: "Market uncertainty during November appears to have contributed to levels of price volatility for Brent and West Texas Intermediate crude oils not seen in several years," EIA administrator Linda Capuano said in a statement.

  • EIA says the recent big declines in Brent prices stem from record output among the world's largest producers and concerns about weaker demand.

The latest: Crude prices are climbing Wednesday as the market responds to signs of declining inventories.

  • "The American Petroleum Institute, an industry group, reported late Tuesday that U.S. stockpiles of crude oil had reduced by 10.2 million barrels last week," the Wall Street Journal reports.

Go deeper: EIA cuts Brent, WTI 2019 forecasts nearly $11/b amid supply glut (S&P Global Platts)

Go deeper

U.S. economy sees record growth in third quarter

The U.S. economy grew at a 33.1% annualized pace in the third quarter, the Commerce Department said on Thursday.

The state of play: The record growth follows easing of the coronavirus-driven lockdowns that pushed the economy to the worst-ever contraction — but GDP still remains well below its pre-pandemic level.

Updated 13 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Large coronavirus outbreaks leading to high death rates — Coronavirus cases are at an all-time high ahead of Election Day — Fauci says U.S. may not return to normal until 2022
  2. Politics: Space Force's No. 2 general tests positive for coronavirus
  3. World: Taiwan reaches a record 200 days with no local coronavirus cases
  4. Europe faces "stronger and deadlier" wave France imposes lockdown Germany to close bars and restaurants for a month.
  5. Sports: Boston Marathon delayed MLB to investigate Dodgers player who joined celebration after positive COVID test.
Dion Rabouin, author of Markets
2 hours ago - Economy & Business

Investors have nowhere to hide

Photo: Jeenah Moon/Getty Images

The massive losses in oil prices and U.S. and European equities were not countered by gains in traditional safe-haven assets on Wednesday.

Why it matters: The unusual movement in typical hedging tools like bonds, precious metals and currencies means they are not providing investors an asset that will appreciate in the event of a major equity selloff.

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