Baku. 15 April. REPORT.AZ/ The US Energy Information Administration on Tuesday dramatically reduced its projections for Brent and WTI spot prices over the next decade, amid climbing production and stagnant demand. Thus, in 2040 the price of oil will reach 141 dollars/barrel.
In its Annual Energy Outlook, the agency is forecasting Brent and WTI at 79 dollars/barrel and 73 dollars/barrel, respectively, by 2020 and climbing to 91 dollars/barrel and 85 dollars/barrel, respectively, by 2025, showing both lower prices and a wider spread between the two benchmarks than forecast a year earlier. However, due to increased production from OPEC member countries and countries outside the Organization for Economic Cooperation and Development (OECD), until 2028 the price of oil will not exceed 100 dollars/barrel.
Report informs, in last year's outlook, EIA forecast Brent to climb to 96.57 dollars/barrel in 2020 and then108.99 dollars/barrel in 2025 and for WTI to jump to 94.57 dollars/barrel in 2020 and to 106.99 dollars/barrel in 2025. EIA's forecast for 2040 prices are 141 dollars/barrel for Brent and 136 dollars/barrel WTI, roughly the same as the outlook from last year.
"US crude oil production starts to decline after 2020, but increased output from non-OECD and OPEC producers helps to keep the Brent price below 100 dollars/barrel through most of the next decade and limits price increases through 2040, when Brent reaches roughly 140 dollars/barrel," EIA said in the report.