Baku, Azerbaijan, Aug.9
By Leman Zeynalova – Trend:
Brent spot prices are expected to average $51 per barrel in 2017 and $52 per barrel in 2018, the US Energy Information Administration (EIA) said in its August Short-Term Energy Outlook (STEO).
West Texas Intermediate (WTI) crude oil prices are forecast to average $2 per barrel less than Brent prices in both 2017 and 2018.
North Sea Brent crude oil spot prices averaged $48 per barrel in July, $2 per barrel higher than the June average and almost $4 per barrel higher than in July 2016, according to the EIA estimates.
“Crude oil benchmark Brent front-month futures prices increased by $2.33 per barrel from July 3, settling at $52.01 per barrel on August 3. The WTI crude oil price increased by $1.96 per barrel during the same period, settling at $49.03 per barrel,” said the report. “Brent and WTI monthly average spot prices in July were $2.11 per barrel and $1.45 per barrel higher, respectively, than the June averages.”
EIA analysts pointed out that crude oil prices were further supported as the Organization of the Petroleum Exporting Countries (OPEC) member Saudi Arabia announced a cap on the country’s crude oil exports in August.
“However, it is unclear how much extra crude oil this cap would remove from the market given the country’s typical seasonal decline in crude oil exports because of an increase in crude oil use for power generation,” said the report. “However, Libya and Nigeria, two other OPEC members, continue to increase crude oil production, a contributing factor in keeping prices near $50 per barrel.”
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