Baku, Azerbaijan, Aug.9
By Leman Zeynalova – Trend:
Brent spot prices are expected to average $72 per barrel in 2018 and $71 per barrel in 2019, the US Energy Information Administration (EIA) said in its August Short-Term Energy Outlook (STEO).
EIA expects West Texas Intermediate (WTI) crude oil prices will average about $6/b lower than Brent prices in 2018 and in 2019.
Crude oil prices declined during July as several key oil producers increased production from the first half of 2018 and as a major supply disruption that many analysts expected to persist for several months was resolved quickly, said the report.
"Crude oil production from most OPEC members, Russia, and other exporting countries were estimated to be higher in July compared with the first-half average of 2018. In addition, a faster-than-expected return of Libyan crude oil production following last month’s unplanned supply outage could have put downward pressure on crude oil prices," said EIA.
Despite these developments, according to EIA estimates, oil supply disruption risk increased during July because of Iranian threats to block the Strait of Hormuz and Saudi Arabia’s decision to halt oil shipments through the Bab alMandeb strait amid Yemeni Houthi rebel attacks. This increased disruption risk could be contributing to higher price volatility, said the report.
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