EIA lowers forecasts for oil prices
Baku, Azerbaijan, May 11
By Leman Zeynalova – Trend:
Brent oil prices are expected to average $53 per barrel in 2017 and $57 per barrel in 2018, the US Energy Information Administration (EIA) said in its May Short-Term Energy Outlook.
West Texas Intermediate (WTI) crude oil prices are forecast to average $2 per barrel less than Brent prices in both 2017 and 2018, according to the report.
This is while in its April report, EIA forecasted the average price for Brent oil at $54.23 per barrel in 2017 and $57.1 per barrel in 2018.
(WTI) oil prices were forecast at $52.24 per barrel in 2017 and $55.1 per barrel in 2018, according to EIA’s previous report.
“During the first half of April, crude oil prices rose, returning to the mid-$50 per barrel level where they had been from December through February,” said the report. “However, crude oil prices fell during the second half of April and on May 4 reached the lowest point since the end of November.”
Between April 3 and May 4, Brent crude oil front-month futures prices declined by $4.74 per barrel to settle at $48.38 per barrel, and West Texas Intermediate (WTI) front-month futures prices declined by $4.72 per barrel to settle at $45.52 per barrel, according to the EIA estimates.
On average, however, Brent and WTI spot prices in April were $0.72 per barrel and $1.73 per barrel higher, respectively, than the March averages, said the report.
Follow the author on Twitter: @Lyaman_Zeyn