US Department of Energy lowers its Brent price forecast

The US Department of Energy has lowered its forecast for the price of Brent oil in 2024 by more than $10 (or 11%) compared to the previous forecast - to $82.57, Report informs referring to the Department’s Energy Information Administration (EIA).

In 2023, the agency expects the oil price at $82.4 per barrel (-1.2% of the previous forecast). The US Department of Energy also predicts that oil production cuts by OPEC+ countries will offset declining demand, prevent an increase in global reserves and maintain prices at $80 per barrel over the next year.

The price of WTI oil is projected at $77.63 per barrel in 2023 and $78.07 per barrel in 2024.

In addition, the US Department of Energy raised the forecast for daily oil production in the country in 2023 by 30,000 barrels, to 12.93 million barrels per day (b/d), which is 1.2 million b/d more than in 2022. Expected production volumes in 2024 are 13.11 million b/d (-40,000 b/d to the previous estimate).