BAKU, Azerbaijan, November 10. The Brent crude oil spot price is expected to average $94 per barrel through the first half of 2023, Trend reports via the US Energy Information Administration (EIA).
“Weakening global economic conditions, which could limit oil demand growth, create the potential for oil prices to end up lower than our forecast… Growth in OPEC and non-OPEC oil production - most notably production in the US - keeps the Brent crude oil price in our forecast lower on an annual average basis in 2023 than in 2022,” the report said.
As the EIA explains, higher-than-projected oil prices could be caused by supply disruptions as a result of the impending EU bans on sea imports of crude oil and petroleum products from Russia.
Despite growing concerns about the weakening of the global economy, the EIA projects that world oil consumption will outpace world oil production in 2023, contributing to an increase in oil prices in the second half of 2023.
“We forecast the Brent crude oil price will rise from an average of $94 per barrel in the first half of 2023 to an average of $98 per barrel in the fourth quarter of the next year, averaging $95 per barrel for all of 2023,” the EIA added.
Meanwhile, according to the EIA, global oil production in 2022 is expected at 99.93 million barrels per day, with further increase into 2023 of around 100.67 million barrels per day.
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