Baku, Azerbaijan, Oct.16
By Leman Zeynalova – Trend:
Brent spot prices are expected to average $52 per barrel in 2017 and $54 per barrel in 2018, according to the October Short-Term Energy Outlook (STEO) of the US Energy Information Administration (EIA).
This is $1 per barrel higher in 2017 and $2 per barrel higher in 2018 compared with last month’s forecast.
In its September STEO, EIA expected Brent spot prices to average $51.07 per barrel in 2017 and $51.58 per barrel in 2018.
West Texas Intermediate (WTI) average crude oil prices are forecast to be $3.50 per barrel lower than Brent prices in 2018.
EIA said that Brent crude oil spot prices averaged $56 per barrel in September, an increase of $4 per barrel from the average in August.
“The Brent crude oil front-month futures price increased by $4.25 per barrel from September 1 to settle at $57 on October 5, 2017. WTI crude oil prices increased by $3.50 per barrel during the same period, settling at $50.79 per barrel. September Brent and WTI monthly average spot prices were $4.45 per barrel and $1.71 per barrel higher, respectively, than the August average spot prices,” said the report.
Higher crude oil prices over the past month reflect declining global oil inventories, increasing expectations for global economic and oil demand growth, and geopolitical events, according to the EIA.
---
Follow the author on Twitter: @Lyaman_Zeyn