Baku, Azerbaijan, March 7
By Leman Zeynalova – Trend:
Brent spot prices will average about $62 per barrel in both 2018 and 2019 compared with an average of $54 per barrel in 2017, the US Energy Information Administration (EIA) said in its March Short-term Energy Outlook (STEO).
EIA expects West Texas Intermediate (WTI) crude oil prices to average $4 per barrel lower than Brent prices in both 2018 and 2019.
North Sea Brent crude oil spot prices averaged $65 per barrel in February, a decrease of $4 per barrel from the January level and the first month-over-month average decrease since June 2017, according to EIA estimates.
“Crude oil prices declined in February after seven consecutive months of increases. Despite the recent price declines, most fundamental crude oil supply and demand indicators suggest global petroleum inventories are declining,” said the report.
EIA estimates that total commercial petroleum inventories in countries in the Organization for Economic Cooperation and Development (OECD) declined to 2.83 billion barrels in February 2018, a decrease of 211 million barrels since February 2017 and the largest annual decrease in inventories since 2003.
A significant increase in price volatility after prices started declining in equity and bond markets likely affected crude oil prices as well, according to the report.
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