Baku, Azerbaijan, March 9
By Aygun Badalova - Trend:
Brent crude oil prices will average $34 a barrel in 2016 and $40 a barrel in 2017, according to the US Energy Information Administration's (EIA) forecasts published in its Short-Term Energy Outlook (STEO). These figures are $3 and $10 a barrel lower than forecast in last month month's STEO, respectively.
The lower forecast prices reflect oil production that has been more resilient than expected in a low-price environment and lower expectations for forecast oil demand growth, the report said.
WTI crude oil prices are expected to average the same as Brent in 2016 and 2017, according to the EIA's forecasts.
Brent crude oil prices averaged $32 a barrel in February, a $1 a barrel increase from January, the EIA said.
Oil prices fell about 3 percent on March 8. Brent was down $1, or 2.5 percent, at $39.84 a barrel. WTI price slipped $1.23, or 3.3 percent, to $36.67 a barrel.
EIA estimates that US crude oil production averaged an estimated 9.4 million barrels per day in 2015. The country's production is forecast to average 8.7 million barrels per day in 2016 and 8.2 million barrels per day in 2017.
EIA estimates that the US crude oil production in February averaged 9.1 million barrels per day, which was 80,000 barrels per day below the January level.