BAKU, Azerbaijan, March 13. The US Energy Information Administration Agency (EIA) expects Brent prices to stand at an average of $88 per barrel in the second quarter of 2024, Trend reports.
Thus, the forecast has been revised up by $4, compared to the previous month's outlook.
The agency anticipates that the tightening oil market dynamics throughout 2024 will maintain Brent prices above current levels. The price is likely to remain relatively stable for the remainder of the year, but as OPEC+ supply cuts expire, the EIA expects a slight downward pressure on prices in 2025 due to increasing inventories.
The forecast suggests a decline in the average Brent crude oil price from $88 per barrel in January 2025 to $82 per barrel in December 2025, averaging $87 per barrel in 2024 and $85 per barrel in 2025.
Meanwhile, in February, the Brent crude oil spot price averaged $83 per barrel, marking a $3 increase from January. As the EIA explained, this rise is attributed in part to ongoing uncertainty and heightened risk surrounding attacks on commercial ships transiting the Red Sea shipping channel.
Additionally, there was anticipation of an extension to voluntary OPEC+ production cuts, which were officially announced on March 4th. These cuts, an extension of the existing ones announced on November 30, 2023, are now prolonged through the second quarter of 2024. The announcement also included an additional voluntary production cut from Russia.