Baku, Azerbaijan, Sept.11
By Leman Zeynalova – Trend:
In its September Short Term Energy Outlook (STEO) the US Energy Information Administration (EIA) is reducing its 2019 Brent crude oil price forecast to $63 per barrel, which is $2/b lower than in the August STEO, Trend reports citing EIA.
The lower 2019 price forecast largely reflects recent global crude oil price fluctuations and lower forecast global oil demand growth, reads the report.
Brent crude oil spot prices averaged $59 per barrel (b) in August, down $5/b from July and $13/b lower than the average from August of last year. EIA forecasts Brent spot prices will average $60/b in the fourth quarter of 2019 and $62/b in 2020. EIA forecasts that West Texas Intermediate (WTI) prices will average $5.50/b less than Brent prices in 2020.
“Global economic indicators continued to decline, contributing to oil price declines and volatility. Reports on trade negotiations between the United States and China also contributed to daily movements in global crude oil prices. On August 23, WTI prices fell by 2 percent when China announced a 5 percent tariff on its imports of US crude oil, the first time US crude oil was included in Chinese tariffs. However, Chinese imports of US crude oil have decreased in 2019 year-to-date compared with 2018, and China has imported more from other countries, including Saudi Arabia,” said EIA.
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