Baku, Azerbaijan, July 11
By Leman Zeynalova – Trend:
Brent spot prices are expected to average $73 per barrel in the second half of 2018 and will average $69 per barrel in 2019, the US Energy Information Administration (EIA) said in its Short-Term Energy Outlook (STEO).
EIA expects West Texas Intermediate (WTI) crude oil prices will average $6 per barrel lower than Brent prices in the second half of 2018 and $7 per barrel lower in 2019.
This is while in its previous STEO, EIA forecasted Brent spot prices to average $71 per barrel in 2018 and $68 per barrel in 2019. WTI crude oil prices were forecasted to average almost $7 per barrel lower than Brent prices in 2018 and $6 per barrel lower than Brent prices in 2019.
“The monthly average spot price of Brent crude oil decreased by $3 per barrel in June to $74 per barrel. Despite the decline, June marked the third consecutive month in which Brent crude oil spot prices averaged more than $70 per barrel,” said the report.
EIA said that the price decline in June largely reflected market expectations in the early part of the month that OPEC, along with certain non-OPEC producers including Russia, would announce a production increase at the June 22–23 meetings.
“Although OPEC/non-OPEC producers did announce plans to increase production starting on July 1, Brent crude oil prices increased after the announcement. The price increases possibly reflected expectations by market participants that announced production increases would not be enough to offset falling production levels in Venezuela and Libya, along with the potential for reduced volumes from Iran following the U.S. withdrawal from the Joint Comprehensive Plan of Action (JCPOA).”
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