BAKU, Azerbaijan, April 12. Brent crude oil spot price is projected at an average $86/b or the rest of 2023, Trend reports with reference to the US Energy Information Administration (EIA).
In its last outlook, EIA expected decrease in oil price from an average of $84/b in the second quarter of 2023 to $81/b in the fourth quarter
"That price is similar to the April 6 closing spot price for Brent, which was almost $87/b, as reported by Refinitiv," the report said.
According to estimations, in 2023, EIA's oil price forecast is most uncertain because of lower-than-projected growth in the economy and oil demand.
"We forecast Brent prices will average $81/b in 2024 with downward price pressures emerging in 2Q24, when we expect global oil inventories will begin to build more significantly. However, because these builds depend on OPEC increasing its crude oil production, uncertainty in the forecast for this period comes from less oil production than we forecast, which could result in higher prices than in our forecast," the report added.
Meanwhile, EIA forecasts world oil and liquid fuels production to average 101.4 mb/d in 2023, which is an increase of 1.5 mb/d year-on-year, and to grow further by an additional 2 mb/d in 2024.