EIA increases its forecast on average price of Brent oil

EIA increases its forecast on average price of Brent oil
  • Clock-gray 10:31
  • calendar-gray 08 July 2020

Daily Brent crude oil spot prices averaged $40 per barrel (b) in June, up $11/b from the average in May and up $22/b from the multiyear low monthly average price in April, APA-Economics reports citing EIA.

Oil prices rose in June as numerous regions worldwide began to lift stay-at-home orders and as global oil supply fell as a result of production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and partner countries (OPEC+). In June, OPEC+ announced that they extended through July their period of deepest cuts that had been set to relax on July 1.

EIA expects monthly Brent spot prices will average $41/b during the second half of 2020 and rise to an average of $50/b in 2021, $4/b and $2/b higher than forecast in last month’s STEO, respectively.

Emil Ismayilov

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