EIA reveals oil prices forecasts
Baku, Azerbaijan, Oct. 7
By Aygun Badalova - Trend:
Brent crude oil prices will average $54 a barrel in 2015 and $59 a barrel in 2016 while West Texas Intermediate (WTI) crude oil prices will average $50 a barrel and $54 a barrel this and the next year respectively, according to the U.S. Energy Information Administration's (EIA) forecasts.
North Sea Brent crude oil prices averaged $48 a barrel in September, a $1 per barrel increase from August. However, volatility remained high during September, the EIA's Short-Term Energy Outlook said.
On a quarterly basis EIA expects Brent prices in 2016 at $54.05 a barrel, $59.38 a barrel, $61.31 a barrel and $59.33 a barrel respectively.
The highest price for WTI in 2016 will be observed in the third quarter - at $56.31 a barrel, according to the EIA's forecasts. In the first quarter WTI price is expected at $49.05 a barrel, in the second quarter - at $54.38 a barrel, in the fourth quarter - at $54.33 a barrel.
Crude oil prices climbed higher in Asia trade Tuesday on signs of ebbing U.S. production and increasing willingness among the major oil producers to collectively jumpstart the market amid the prolonged price slump, the Wall Street Journal reported.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at $49.12 a barrel, up $0.59 in the Globex electronic session. November Brent crude on London's ICE Futures exchange rose $0.38 to $52.30 a barrel.
EIA estimates that total U.S. crude oil production declined by 120,000 barrels per day in September compared with August. Crude oil production is forecast to decrease through mid-2016 before growth resumes late in 2016.
Projected U.S. crude oil production averages 9.2 million barrels a day in 2015 and 8.9 million barrels per day in 2016.