US Department of Energy cuts Brent oil price forecast for 2023 by 10%
[ad_1]
The US Department of Energy lowered the forecast for the average price of Brent oil for 2023 by 10% to $83 per barrel, should from the agency’s Energy Information Administration (EIA) short-term report. The previous forecast was $92 per barrel.
“We forecast Brent oil to average $83/bbl in 2023, 18% lower than in 2022, and continue to decline to $78/bbl in 2024 as global oil inventories rise that put downward pressure on oil prices,” the report says.
On December 3, 2022, the EU countries agreed on a price ceiling for Russian oil of $60 per barrel, which is expected to be reviewed every two months so that the ceiling level is 5% below the price of Urals. The restriction came into force on December 5, along with a ban on the supply of Russian oil by sea to the EU countries. For oil products, the restriction will come into effect on February 5. In addition to the EU countries, the G7 countries and Australia also joined the ceiling.
After that, on December 27, Russian President Vladimir Putin signed a decree on retaliatory measures to the oil price ceiling. According to the text of the document, a ban is introduced on the supply of Russian oil and oil products to foreign companies and individuals, if the contracts directly or indirectly provide for a cap price mechanism.
[ad_2]
Source link
