Brent prices to average $53/b in 2017—EIA

Published by

As a result of rising oil prices in December, the U.S. Energy Information Administration (EIA) has increased its forecast for both Brent and WTI crude oil prices by $2, and now sees Brent prices averaging $53 and WTI averaging $52 per barrel this year.

EIA’s January Short-Term Energy Outlook (STEO) forecasts average Brent prices at $56 and average WTI prices at $55 per barrel in 2018. Still, the oil price forecasts have very broad uncertainty bands, in line with the ranges of values of the contracts for future delivery. Contracts traded during the five-day period ending January 5, for example, suggest that the market expects WTI prices could range from $35 to $93 in December of this year.

EIA’s increased forecast in the January STEO, compared to the December STEO, reflects the market reaction to the OPEC deal at the end of November, which pushed average Brent prices trading $9 higher in December compared to the average for November. The two key factors that could push crude prices up this year would be strong demand and the agreement between OPEC and 11 non-OPEC producers to curtail crude oil supply, according to EIA.

Potential downward pressure on oil prices would come from the expected rise in global output, which would also reduce the potential for significant oil price increases through 2018.

The world’s petroleum and other liquid inventory builds are expected to continue, although at a slower pace this year and next, despite OPEC’s deal, the EIA said.

The EIA said yesterday that crude oil production in the U.S. this year would average nine million bpd, or 110,000 bpd more than last year.

Prospects for 2018 are also rosy production-wise, with output seen to rise further to 9.3 million barrels daily, with domestic demand averaging 20.22 million bpd in 2018, up by 370,000 bpd from 2017.

Recent Posts

Firm to drive investment opportunities for media industry in Nigeria

“We believe the media is the pulse of culture, business, and innovation. This media roundtable…

9 minutes ago

How AI will revolutionise critical sectors of Nigeria’s economy, ease learning — IT Expert

Speaking on Arise TV's Newsnight, Aguene, who is also the Chief Executive Officer (CEO) of…

29 minutes ago

Jincheng Riders to partner Niger govt on youth sanity, restiveness

The Jincheng Riders Youths Association says it will partner with the Niger State Government to…

39 minutes ago

Kwara group calls for innovation in governance

A pro-democracy group in Kwara state, “Kwara Must Change”, has proposed the creation of a…

54 minutes ago

Security of public office holders, traditional rulers paramount to development —  Bauchi CPS

He said, “These leaders serve as the backbone of their respective communities and governance structures,…

1 hour ago

Lagos LG polls: YP chairmanship aspirant officially declares for Eti-Osa seat

The chairmanship aspirant made this promise on Monday in his address to people of Eti-Osa,…

1 hour ago

Welcome

Install

This website uses cookies.