BAKU, Azerbaijan, June 10. The average price of Brent crude oil is expected to rise in the second half of 2023, reaching an average of $79, the US Energy Information Administration (EIA) said, Trend reports.
At the same time, this forecast is $1/b higher compared to our previous.
Furthermore, for the year 2024, EIA forecasts an average price of $84/b, which is $9/b higher than previously expected.
These projections reflect an upward trend in the Brent crude oil price, indicating potential price increases in the coming months and years, EIA explained.
In May, the average spot price of Brent crude oil was $76/b, which is a decrease of $9/b compared to April. The decline in crude oil prices during May was attributed to persistent uncertainty surrounding economic conditions, which constrained expectations for global oil demand growth, EIA said.
The agency noted that global oil inventories are projected to decrease slightly next year.
Despite the recent price weakness, EIA’s forecast suggests that global oil inventories will decrease in each quarter from 3Q23 to 3Q24. This anticipated decline in inventories is expected to gradually exert upward pressure on oil prices.