US revised oil price forecast downward
The US Energy Information Administration (EIA), citing growing concerns about the global economic outlook, lowered its Brent oil price forecast for this year by about $7.
In the EIA’s “April 2023 Near-Term Energy Outlook Report”, the 1.2 million barrels per day cut taken by the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producing countries in the OPEC+ group in early April supported price increases but weak global economy. Data, ongoing risk perception regarding the banking sector and inflation concerns were said to have increased downward pressure on oil prices.
In this context, the average price of a barrel of Brent crude for this year is estimated at $78.05. This figure was $85.01 in the previous report.
The price of a barrel for West Texas (WTI) crude oil is forecast to be $73.62 this year. The WTI barrel price was estimated at $79.24 in the previous report.
Next year, the Brent crude oil price per barrel is expected to be $74.47, while the WTI crude oil price is expected to be $69.47 per barrel.
CRUDE OIL PRODUCTION IS EXPECTED TO INCREASE
According to the report, average daily crude oil production in the US is expected to be around 12,530,000 barrels this year. Last year, this figure was recorded at approximately 11 million 880 thousand barrels. Production is estimated to reach 12 million 690 thousand barrels in 2024.
It is estimated that the world supply of oil will be 101 million 340 thousand barrels per day this year and 103 million 20 thousand barrels next year.
The report indicated that after the cuts announced last month, OPEC’s production of oil and derivatives will reach 33,676,000 barrels a day this year and 34,450,000 barrels a day next year. The group’s crude production is estimated to be 28,340,000 barrels this year and 28,990,000 barrels next year.
World oil demand is expected to be 100,990,000 barrels a day this year and 102,710,000 barrels next year. The expected increase in global consumption for the remainder of the year and this year is expected to come from non-OECD Asian countries, led by China and India. (AA)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
