EIA: Average Brent oil price not to reach $60/b by 2018
Baku, Azerbaijan, Feb.8
By Leman Zeynalova – Trend:
EIA forecasts Brent crude oil prices to average $55 per barrel in 2017 and $57 per barrel in 2018.
West Texas Intermediate (WTI) crude oil prices are forecast to average about $1 per barrel less than Brent prices in 2017, EIA said in its February Short-Term Energy Outlook (STEO).
“Benchmark North Sea Brent crude oil spot prices averaged $55 per barrel in January, a $1 per barrel increase from December,” said the report. “This price was $24 per barrel higher than the January 2016 average, and it was the highest monthly average for Brent spot prices since July 2015.”
The relatively stable prices in January came as oil market participants assessed news and data on the status of supply from countries participating in the production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries, said EIA.
During a meeting in Vienna, Austria, on Nov. 30, 2016, OPEC members decided to implement a new production target of 32.5 million barrels per day. Later, non-OPEC countries agreed to cut the output by 558,000 barrels per day during the meeting held Dec. 10, 2016.
Eleven non-OPEC countries – Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan – agreed to reduce the oil output.
OPEC and non-OPEC countries pledged to start implementing the deal from Jan. 1, 2017 for six months, extendable for another six months.
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