EIA Reveals Latest Oil Price Forecasts
by Andreas Exarheas
click here to read the original article at Rigzone.com
*this article was not written by Roseland Oil & Gas
The U.S. Energy Information Administration (EIA) has revealed its latest Brent and West Texas Intermediate (WTI) oil price forecasts in the July edition of its short-term energy outlook (STEO).
According to the July STEO, the EIA now sees the Brent spot price averaging $79.34 per barrel in 2023 and $83.51 per barrel in 2024, and the WTI spot price averaging $74.43 per barrel this year and $78.51 per barrel next year.
The latest price projections reflect very little movement compared to the EIA’s June STEO, which saw the Brent spot price coming in at $79.54 per barrel in 2023 and $83.51 per barrel in 2024, and the WTI spot price averaging $74.60 per barrel in 2023 and $78.51 per barrel next year.
In a quarterly price breakdown included in the latest STEO, the EIA highlighted that the Brent spot price averaged $81.04 per barrel in the first quarter of this year and $78.02 per barrel in the second quarter, while the WTI spot price averaged $75.96 per barrel in the first quarter and $73.49 per barrel in the second quarter.
Looking further ahead, the latest STEO projected that the Brent spot price would average $78.32 per barrel in the third quarter of this year, $79.97 per barrel in the fourth quarter, $81.98 per barrel in the first quarter of next year, $83 per barrel in the second quarter of next year, $84 per barrel in the third quarter of 2024, and $85 per barrel in the fourth quarter.
The EIA’s July STEO anticipated that the WTI spot price would come in at $73.32 per barrel in the third quarter of 2023, $74.97 per barrel in the fourth quarter, $76.98 per barrel in the first quarter of next year, $78 per barrel in the second quarter of 2024, $79 per barrel in the third quarter of next year, and $80 per barrel in the fourth quarter.
“The Brent crude oil spot price in our forecast gradually increases in the coming months, reflecting our expectation that global oil inventories will decline,” the EIA stated in its July STEO.
“The Brent price averaged $75 per barrel in June, unchanged from May, as ongoing concerns regarding weakening global economic conditions continued to limit expectations for global oil demand growth, which countered upward price pressure from tighter near-term oil supplies,” the EIA added.
“The reduction in expected near-term oil supplies was the result of the OPEC+ extended crude oil production cuts announced on June 4 and an extension of voluntary cuts through August announced by Saudi Arabia on July 3. We expect the production cuts and rising demand to increase prices going forward,” the EIA continued.
In a report sent to Rigzone this week, Standard Chartered projected that the ICE Brent price would come in at $91 per barrel this year and $98 per barrel in 2024. The company expects the NYMEX WTI price to be $88 per barrel this year and $95 per barrel next year, according to the report, which also included a quarterly price breakdown.
Brent is anticipated to come in at $88 per barrel in the third quarter of this year, $93 per barrel in the fourth quarter, $92 per barrel in the first quarter of next year, $94 per barrel in the second quarter of 2024, $98 per barrel in the third quarter of 2024, and $106 per barrel in the fourth quarter of next year, the report showed.
In the report, WTI is projected to be $85 in the third quarter of 2023, $91 per barrel in the fourth quarter, $89 per barrel in the first quarter of 2024, $91 per barrel in the second quarter, $95 per barrel in the third quarter of next year, and $103 per barrel in the fourth quarter.
At the time of writing, Brent is trading at $80.36 per barrel and WTI is trading at $75.87 per barrel. The former’s highest close in 2023, so far, came on January 23, at $88.19 per barrel, and its lowest close in 2023, so far, came on June 12, at $71.84 per barrel. WTI’s highest 2023 close, so far, was seen on January 26, at $87.47 per barrel, and its lowest 2023 close, so far, came on June 12, at $67.12 per barrel.
by Andreas Exarheas
click here to read the original article at Rigzone.com
*this article was not written by Roseland Oil & Gas