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Average Brent price rises by 40 percent year-on-year

Oil&Gas Materials 1 November 2018 16:20

Baku, Azerbaijan, Nov.1

By Leman Zeynalova – Trend:

The average price of Brent oil was 40 percent higher in January-October 2018 than in the same period of 2017, following a 24 percent increase in 2017, the European Bank for Reconstruction and Development (EBRD) said in its Regional Economic Prospects in the EBRD Regions November 2018.

In September 2018 the price of Brent surpassed $80 per barrel, returning to levels last seen in the first half of 2014, according to the Bank’s estimates.

“Higher oil prices reflect stronger demand, lower supply from Venezuela and some other producers as well as production caps agreed by the members of the Organization of Petroleum Exporting Countries (OPEC) and Russia,” said the EBRD.

Infrastructure bottlenecks, on the other hand, limit the ability of producers of shale oil in the United States to put downward pressure on the oil price, according to the report.

EBRD analysts note that oil price increases provided a further boost to growth in Russia, Central Asia and Azerbaijan.

“In addition, remittances from Russia to Central Asia, Moldova and the Caucasus picked up by 19 percent in US dollar terms in the first half of 2018,” said the report.

Yet on current trends, remittances are unlikely to surpass this year the 2013 peak, the Bank believes.

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Follow the author on Twitter: @Lyaman_Zeyn

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