EIA raises forecast for oil prices

The average price for North Sea Brent crude oil will be $43.73 per barrel in 2016 and $52.15 per barrel in 2017, according to the forecasts of the US Energy Information Administration (EIA) in the Short-term Energy Outlook July 2016.

In its Short-term Energy Outlook June 2016, EIA forecasted the Brent crude oil price at $43.03 per barrel and $51.82 per barrel in 2016 and 2017, respectively.

West Texas Intermediate (WTI) crude oil prices are forecast at $43.57 per barrel in 2016 and $52.15 per barrel in 2017, according to the EIA.

This is while in its Short-term Energy Outlook June 2016, the EIA forecast the WTI at $42.83 per barrel and $51.82 per barrel in 2016 and 2017, respectively.

The prices for Brent and WTI stood at $52.32 per barrel and $48.67 per barrel, respectively, in 2015, said the EIA.

The monthly average spot price of Brent crude oil increased by $2 per barrel in June to $48 per barrel, which was the highest monthly average for Brent since October 2015, according to the EIA.

“Significant outages of global oil supply contributed to rising oil prices in early June,” said the EIA. “However, concerns over future economic growth related to the United Kingdom’s June 23 vote to exit the European Union and the easing of supply disruptions in Canada contributed to falling oil prices in late June.”

Source: Trend