BAKU, Azerbaijan, August 11. The US Energy Information Administration (EIA) expects Brent price to average $86 per barrel during the second half of 2023, climbing to $88 per barrel in both November and December, Trend reports.
"Our forecast indicates a forthcoming increase in the Brent crude oil spot price due to our projections of tighter balances within the global oil markets. In July, the Brent crude oil spot price reached an average of $80 per barrel, marking a $5 per barrel increase compared to June. This rise in crude oil prices can be attributed primarily to the extension of voluntary production cuts by Saudi Arabia and anticipations of heightened global demand," the department said.
Thus, the EIA anticipates that these production cuts, coupled with growing demand, will contribute to a decline in global oil inventories and exert upward pressure on oil prices throughout the remainder of this year.
Moreover, this price level is expected to persist in the first quarter of 2024, the outlook added.
"As supply growth leads to the gradual rebuilding of global oil inventories later in 2024, crude oil prices are projected to ease during the second quarter. Our forecast indicates an average Brent price of $86 per barrel for the year 2024," the EIA concluded.