Baku, Azerbaijan, Feb.7
By Leman Zeynalova – Trend:
Brent crude oil spot price is expected to average $62 per barrel in 2018 and 2019 both, according to February Short-term Energy Outlook (STEO) released by the US Energy Information Administration (EIA).
This is while in its previous report, EIA forecasted Brent price to average $60 per barrel in 2018 and $61 per barrel in 2019.
“North Sea Brent crude oil spot prices averaged $69 per barrel (b) in January, an increase of $5/b from the December level. Monthly average Brent prices have increased for seven consecutive months, and, on January 11, spot prices moved higher than $70/b for the first time since December 2014. EIA forecasts Brent spot prices will average about $62/b in both 2018 and 2019 compared with an average of $54/b in 2017,” said the report.
EIA expects West Texas Intermediate (WTI) crude oil prices to average $4/b lower than Brent prices in both 2018 and 2019.
Prices have increased over the past seven months as oil inventories, both in the United States and globally, have fallen steadily, according to the report.
In January, oil prices may have received some support following the Organization of the Petroleum Exporting Countries’ (OPEC) monitoring committee meeting, where some oil ministers suggested extending the production cut agreement in some form beyond the current expiration at the end of 2018, EIA analysts believe.
Rapid declines in Venezuelan crude oil output are also likely contributing to higher crude oil prices, according to the report.
---
Follow the author on Twitter: @Lyaman_Zeyn