The forecast for a rise in the price of oil in the US continues.

The US Energy Information Administration (EIA) reported that the expected decline in global oil inventories through the last quarter of next year puts upward pressure on oil prices.

According to the EIA’s “Short-Term Energy Outlook Report for July 2023”, the price of a barrel of Brent crude will continue to increase until the end of the year due to supply cuts from the OPEC+ group, made up of the Organization of Oil Exporting Countries. Petroleum. (OPEC) and some non-OPEC producing countries, and rising global demand for oil, which is expected to rise to $81.

The expected decline in global oil stocks through the last quarter of next year is expected to support rising oil prices.

OIL STOCKS ARE ESTIMATED DECREASING

World oil stocks, which rose by an average of 600,000 barrels per day in the first half of this year, are expected to decline by an average of 700,000 barrels per day in the second half of the year. Stocks, which are expected to decline by an average of 400,000 barrels per day in the first three quarters of next year, are expected to rise by an average of 100,000 barrels per day in the final quarter of next year.

In this context, the average price of a barrel of Brent crude oil is forecast to be $79.34, and the average price of a barrel of West Texas (WTI) crude oil will be $74.43.

Next year, the average price per barrel of Brent crude oil is expected to be $83.51, and the average price per barrel of WTI crude oil is expected to be $78.51.

US PRODUCTION EXPECTED TO INCREASE

Average daily crude oil production in the US this year is expected to be around 12,560,000 barrels. Last year, this figure was recorded at approximately 11 million 890 thousand barrels. Production is estimated to increase to 12,850,000 barrels in 2024.

It is estimated that the world supply of oil will be 101 million 100 thousand barrels per day this year and 102 million 570 thousand barrels next year. Expected production increases from non-OPEC countries such as the US, Canada, Brazil and Guyana are forecast to offset supply cuts from the OPEC+ group.

World oil demand is expected to be 101,160,000 barrels a day this year and 102,800,000 barrels next year.

It is estimated that the increase in consumption will come from non-OECD Asian countries led by China and India. Expected to rise by about 800,000 barrels per day in China this year and 400,000 barrels next year, the report says, consumption in India is estimated to rise by an average of 300,000 barrels per day this year. and next year (BRITISH AUTOMOBILE CLUB)