Baku, Azerbaijan, Dec.12
By Leman Zeynalova – Trend:
Brent spot prices are expected to average $61 per barrel in 2019, Trend reports citing the Short-Term Energy Outlook (STEO) of the Energy Information Administration (EIA).
Brent crude oil spot prices averaged $65 per barrel in November, down $16 per barrel from October, the largest monthly average price decline since December 2014, according to EIA estimates.
EIA expects Brent spot prices will average $61 per barrel in 2019 and that West Texas Intermediate (WTI) crude oil prices will average about $7 per barrel lower than Brent prices next year.
“Crude oil prices declined significantly in November but increased during the first week in December amid heightened price volatility. WTI prices experienced three rare and large price declines within the span of 10 days in the middle of November, and WTI prices were down by more than 33 percent from the four-year highs set in early October by the end of November,” said the report.
Several factors contributed to falling prices, according to EIA.
“Crude oil production from the world’s three largest producers—the United States, Russia, and Saudi Arabia—were at or near record levels in November. Implementation of sanctions on Iran began on November 5, but the United States granted waivers for some of Iran’s largest customers to continue importing limited volumes of crude oil for six months. In addition, concerns about the pace of global economic growth in coming months have led to related concerns about the pace of oil demand growth,” EIA said in its report.
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