US Department of Energy lowers its Brent price forecast in 2024 to $82.42

US Department of Energy lowers its Brent price forecast in 2024 to $82.42
# 06 February 2024 23:21 (UTC +04:00)

The US Department of Energy slightly lowered its forecast for the price of Brent oil in 2024 to $82.42 from $82.49 per barrel, according to a report from the department’s Energy Information Administration (EIA), APA reports citing TASS.

In 2025, the Brent price is expected to be $79.48 per barrel ($79 per barrel according to previous forecast).

Spot Brent oil prices rose $2 per barrel in January to average $80 per barrel due to uncertainty over oil supplies amid attacks on ships in the Red Sea, the department said. This is the first increase in oil prices since September last year.

The US Department of Energy expects oil prices to rise in the coming months, but in the second quarter it expects pressure on prices due to the growth of global reserves and their decline. "However, ongoing risks of supply disruptions in the Middle East create the potential for crude oil prices to be higher than our forecast," the report says.

The OPEC+ production cut will lead to a reduction in global oil reserves in February-March, the department notes adding that after a period of relatively balanced market until the end of 2024, the market will gradually return to moderate inventory accumulation in 2025 amid slowdown in oil demand, which will be stronger than the production growth.

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