SEATTLE (Oil Monster): The U.S. Energy Information Administration (EIA) announced that it expects the average annual crude oil prices in 2024 and 2025 to remain near their average 2023 prices. This is based on expectations of a relatively balanced supply and demand for petroleum liquids over the next two years.
According to EIA, the Brent crude oil prices are expected to average at $82 per barrel (b) in 2024 and $79/b in 2025. This compares with the average price of $82 per barrel recorded during the previous year. Although, West Texas Intermediate (WTI) crude oil prices are expected to remain slightly lower, they are also expected to follow the same path, EIA report noted.
EIA expects the prices of crude oil to see modest rise, mainly driven by OPEC+ production cuts, which in turn may lead to global stock draws of 810,000 barrels per day (b/d). The prices will witness gradual decline after April this year with minor stock builds, as production is likely to exceed consumption. The stocks are predicted to increase by 110,000 b/d from 2Q24 through 4Q24 and by 280,000 b/d in 2025.
The agency predicts global petroleum consumption to increase by 1.4 million b/d in 2024 and 1.2 million b/d in 2025.
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