EIA revises up Brent price forecast by $4 for 2020

Baku, June 10, AZERTAC

The US Energy Information Administration (EIA) has revised up its Brent crude oil price forecast for 2020 by $4 per barrel, according to its monthly Short-Term Energy Outlook (STEO) report for June released on Tuesday, according to Anadolu Agency.

The international benchmark is now expected to average $38 per barrel this year, up from its previous estimate of $34 a barrel.

Brent crude prices were at an average of $50 per barrel during the first quarter of 2020. It is estimated to average $28 in the second as it is anticipated to average $36 in the third quarter and $38 in the fourth. The administration expects the price to average $37 per barrel during the second half of the year.

The EIA said it forecasts an increase in Brent crude to average $48 per barrel in 2021, as "inventories decline into 2021."

"The forecast of rising crude oil prices reflects expected declines in global oil inventories during the second half of 2020 and through 2021," the report said.

As coronavirus-related "stay-at-home orders are eased, EIA expects liquid fuels consumption will rise," it added.

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