Baku, Azerbaijan, April 10
By Leman Zeynalova – Trend:
Brent spot prices will average $65 per barrel in 2019 and $62 per barrel in 2020, compared with an average of $71 per barrel in 2018, the US Energy Information Administration (EIA) said in its April Short-term Energy Outlook (STEO), Trend reports.
This is while it its March STEO, EIA forecasted Brent prices to stand at $63 per barrel in 2019. The forecast for 2020 has remained unchanged.
Brent crude oil spot prices averaged $66 per barrel in March, up $2/b from February 2019. Brent prices for the first quarter of 2019 averaged $63/b, which is $4/b lower than the same period in 2018, according to the report.
“Despite lower crude oil prices than last year, Brent prices in March were $9/b higher than in December 2018, marking the largest December-to -March price increase since December 2011 to March 2012. EIA forecasts Brent spot prices will average $65/b in 2019 and $62/b in 2020, compared with an average of $71/b in 2018. EIA expects that West Texas Intermediate (WTI) crude oil prices will average $8/b lower than Brent prices in the first half of 2019 before the discount gradually falls to $4/b in late-2019 and through 2020,” said EIA.
Increasing crude oil supply disruptions and voluntary reductions in oil production from the Organization of the Petroleum Exporting Countries (OPEC) are among the recent price drivers in the crude oil market, according to the report.
Venezuela, in particular, has experienced several prolonged electric power failures throughout the country, which has directly resulted in reduced crude oil production and exports, said EIA.
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