BAKU, Azerbaijan, May 11. Brent crude oil spot price is projected at an average $74/b in 2024, Trend reports with reference to the US Energy Information Administration (EIA).
This forecast has been downgraded by $7/b, compared to the last month's assessment.
"Brent crude oil spot price fell from an average of $85/b in April to close at $73/b on May 4. At the beginning of April, OPEC+ announced a cut to crude oil production of 1.2 mb/d through the end of 2023, which increased crude oil prices on expectations of tightening oil supplies. However, ongoing considerations about weakening global economic conditions, perceived risk around the global banking sector, and persistent inflation outweighed the initial increase in oil prices and have led to lower prices," the report said.
Meanwhile, according to the EIA's estimations, global liquid fuels demand in 2023 will grow by 1.6 million barrels per day (mb/d) to an almost 101 mb/d, and by 1.7 mb/d in 2024 to an average of 103.02 mb/d in 2024.
At the same time, the EIA expects Brent price to level back between $75/b and $80/b, as global demand growth brings back global oil market into balance between 3Q2023 and 1Q2024.
"Beginning in 2Q24, we expect consistent global oil inventory builds over the rest of the forecast period as global oil production outpaces global oil demand, putting downward pressure on crude oil prices," the report added.
