BAKU, Azerbaijan, December 13. The average Brent price will rise from $78/b in December 2023 to an annual average of $83/b in 2024, Trend reports.
According to the US Energy Information Administration Agency (EIA), the average spot price for Brent crude oil was $83 per barrel in November, marking an $8/b decrease compared to October. This drop was primarily influenced by ongoing concerns about the global oil demand.
Although crude oil prices continued to fall in the first week of December, closing near $76/b on December 8, the EIA anticipates upward pressure on crude oil prices in the upcoming months. This expectation is based on the agency's forecast of a decline in global oil inventories in the first quarter of 2024, partly attributed to the OPEC+ production cuts announced on November 30.
Thus, the EIA's forecast indicates a peak in the mid-$80/b range at the end of the first quarter of 2024, surpassing futures contracts by approximately $10/b.
Anticipating that OPEC+ production cuts will counterbalance lower global demand growth and prevent a rise in global oil inventories, the agency expects Brent prices to stay above $80/b next year.
Despite projecting an increase in crude oil prices from the current levels, the EIA has adjusted its projection for the 2024 annual average Brent price, reducing it by $11/b compared to the November forecast.