EIA reveals oil price forecasts
Baku, Azerbaijan, Oct.11
By Leman Zeynalova – Trend:
Brent spot prices are expected to average $74 per barrel in 2018 and $75 per barrel in 2019, the US Energy Information Administration (EIA) said in its October Short-Term Energy Outlook (STEO).
EIA estimates that Brent crude oil spot prices averaged $79 per barrel in September, up $6 per barrel from August.
EIA expects West Texas Intermediate (WTI) crude oil prices will average about $6 per barrel lower than Brent prices in 2018 and in 2019.
“This increase reflects recent price movements incorporated into EIA’s forecast, the higher starting point for the forecast, and the possibility that crude oil prices could remain elevated while market participants assess how much crude oil production in Iran will decline in the coming months and the ability of other oil producers to offset lost volumes,” said the report.
EIA believes that some developed and emerging market economies may be starting to experience slower economic growth, which could result in lower-than-forecast oil demand, especially if crude oil prices continue to rise.
Rising oil prices could begin to affect oil demand in countries experiencing currency depreciation and/or a slowdown in their economic fundamentals, according to the report.
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