From the Document: "Benchmark crude oil prices--such as U.S. West Texas Intermediate (WTI)--have steeply declined since January 2020. Oil market oversupply, the result of COVID-19 [coronavirus disease 2019] travel restrictions and increased global supply levels in March and April, has exerted downward pressure on prices. Although the duration of low oil prices is uncertain, price levels for the remainder of 2020 may largely be a function of demand recovery, supply adjustments, and return to a balanced market. Energy Information Administration (EIA) price forecasts, as of April 2020, indicate that WTI spot prices may average just over $29 per barrel during calendar year 2020, less than half the price at the beginning of the year. Some federal oil production tax incentives are triggered when a reference price of crude oil--estimated and published annually by the Internal Revenue Service (IRS)--drops below a statutory oil price level. The reference price is an 'estimate of the annual average wellhead price per barrel for all domestic crude oil the price of which is not subject to regulation.'"
CRS Insight, IN11381
Congressional Research Service: https://crsreports.congress.gov/