The US Department of Energy assumes that in the near future prices will adjust due to seasonal growth in demand, as well as against the backdrop of voluntary production cuts by some OPEC countries.
The US Department of Energy has sharply lowered its Brent oil price forecast for 2023 from $85.01/bbl. to $78.65/bbl This follows from the Energy Information Administration’s (EIA) monthly forecast data.
The Brent cost estimate for 2024 has also been significantly reduced, from $81.21/bbl. to $74.47/bbl
The agency emphasized that oil prices are falling due to fears of a worsening world economy, the possibility of a crisis in the banking sector, as well as persistent inflation. The average Brent spot price, according to the EIA, was $85/bbl in April. At the same time, on May 4, the agency recorded their fall to $73/bbl.
At the same time, the US Department of Energy assumes that in the near future prices will be adjusted due to seasonal growth in demand, as well as against the backdrop of voluntary production cuts by some OPEC countries.
Moreover, the EIA expects that the stabilization of oil prices will also be affected by the increase in oil consumption in China and India. According to the ministry, Brent prices will recover from current levels at $75-80/bbl. between the third quarter of 2023 and the first quarter of 2024.
It will be remembered that Canada stopped oil and gas production due to forest fires.
In Russia, oil and gas revenues are forecast to fall for the month
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.