Baku, Azerbaijan, Feb.24
By Leman Zeynalova – Trend:
Brent prices are expected to stand at $58 per barrel in the first quarter of 2019, before dropping to $55 per barrel in the second quarter of the year, Trend reports citing the forecasts of the UK-based Capital Economics consulting company.
The prices for Brent will continue to decline in the remaining quarters of 2019, standing at $52 per barrel and $50 per barrel in the third and fourth quarters of 2019, respectively, according to the company.
When coming to West Texas Intermediate (WTI), the company expects the prices for this oil to stand at $50 per barrel in the first quarter of 2019 and $48 per barrel in the second quarter.
Capital Economics forecasts further declines in WTI prices in the third and fourth quarters of 2019, when the prices will drop to $46 per barrel and $45 per barrel, respectively.
This price for both Brent and WTI oil are expected to eventually recover in the first quarter of 2020, reaching $53 per barrel and $49 per barrel, respectively, said the company.
The February Short-Term Energy Outlook (STEO) of the US Energy Information Administration (EIA) shows that Brent spot prices are expected to average $61 per barrel in 2019 and $62 per barrel in 2020, compared with an average of $71 per barrel in 2018.
EIA expects that WTI crude oil prices will average $8/b lower than Brent prices in the first quarter of 2019 before the discount gradually falls to $4/b in the fourth quarter of 2019 and through 2020.
---
Follow the author on Twitter: @Lyaman_Zeyn