EIA reveals forecasts for global oil prices

By Leman Zeynalova – Trend:

Brent spot prices are expected to average $51.07 per barrel in 2017 and $51.58 per barrel in 2018, the US Energy Information Administration (EIA) said in its September Short-Term Energy Outlook (STEO).

West Texas Intermediate (WTI) crude oil prices are forecast to average $48.83 per barrel in 2017 and $49.58 per barrel in 2018.

'Crude oil benchmark Brent front-month futures prices increased by $2.71 per barrel (b) from August 1, settling at $54.49/b on September 7. The WTI crude oil price declined 7 cents/b during the same period, settling at $49.09/b. August Brent and WTI monthly average spot prices were $3.28/b and $1.41/b higher, respectively, than the July average spot prices,' said the report.

EIA analysts point out that despite lower WTI prices because of lower refinery demand for crude oil and transportation constraints, Brent prices were supported by global supply reductions.

' Libya's crude oil production declined by an estimated 150,000 b/d from July to August because of oil field closures. August oil production in Norway and the United Kingdom, the two main countries for North Sea oil production, fell by a combined 50,000 b/d from the July level, which led to the lowest amount of Brent crude oil scheduled for loading for the month of August since 2014,' said the report.

In addition, crude oil exports from the Organization of the Petroleum Exporting Countries (OPEC) declined by an estimated 1.3 million b/d from July to August, added the analysts.

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