BAKU, Azerbaijan, July 12. The average price of Brent crude oil is expected to increase to $81/b by the end of 2023, Trend reports.
The US Energy Information Administration (EIA) previously expected Brent crude oil price growing in the second half of 2023, reaching an average of $79.
In its forecast, the EIA anticipates a gradual increase in the Brent crude oil spot price over the next few months. This projection aligns with the expectation of declining global oil inventories. In June, the average Brent price remained steady at $75/b, compared to May.
As the agency explained, despite concerns about weakening global economic conditions, which limited expectations for oil demand growth, the tightening of near-term oil supplies exerted upward pressure on prices. This tightening resulted from the extended crude oil production cuts announced by OPEC+ on June 4 and the voluntary cuts extended by Saudi Arabia through August, as announced on July 3.
Thus, the EIA forecasts Brent crude oil spot price at an average $78/b in July 2023.
"Crude oil prices gradually increase throughout our forecast, reaching about $80/b in 4Q23 and averaging about $84/b in 2024 because we expect that global oil inventories will decline over the next five quarters," the EIA concluded.