EIA decreased the 2023 forecast on the Brent oil

The U.S. Energy Information Administration (EIA) changed the forecast concerning the spot average price for Brent. According to a new forecast, the price for this oil type will be 10% lower in 2023. This data was published in the last short-term energy outlook (STEO).

The January forecast of EIA includes several assumptions. According to this forecast, the average price for Brent will be $83 per barrel in 2023. This is 18% lower than in 2022. It will fall to 78% in 2024 as global reserves of black gold increase. Such a situation will put downward pressure on the cost of crude oil.

The last EIA forecast states that global oil production will increase. If the production volume was 100 million bpd in 2022, then in 2024, the average figure will reach 102.8 million bpd. It will be driven by a serious increase in production in non-OPEC countries.

Nevertheless, according to January STEO, the uncertainty concerning the supply of raw materials from Russia will remain, especially in 2023.