The agency expects that quotations in the second quarter will amount to $65.
The US Department of Energy has raised its forecast for the price of Brent crude oil in 2021 from $60.7 to $62.3 per barrel, according to a report by the Energy Information Administration (EIA) of the US Department of Energy.
The agency expects that Brent oil prices in the second quarter will be $65 per barrel, and in the second half of 2021, the price will drop to an average of $61 per barrel. In 2022, according to the ministry, the price of Brent oil will be set at $60.5 per barrel.
The price of WTI crude oil is projected at $58.9 per barrel in 2021 and $56.7 in 2022.
The US Department of Energy noted that in March 2021, the average price of Brent oil increased by $3 to $65 per barrel. According to the agency, the increase in oil prices in March reflects expectations of an increase in demand on the background of vaccination against coronavirus and growing economic activity, combined with the continuing OPEC+ production restrictions last month.
Oil production forecast
The US Department of Energy also expects an increase in daily oil production in the United States in the fourth quarter of 2021 by 500 thousand barrels, to 11.4 million barrels per day. The expected production volumes in 2022 were reduced by 100 thousand barrels to 11.9 million barrels per day.
Also, the ministry expects an increase in OPEC oil production in the second quarter by 700 thousand barrels, to 25.8 million barrels per day, linking the forecast with the recent decision of OPEC+ to increase production in May – July gradually. In the second half of 2021, the agency expects an increase in OPEC production by another 2.1 million barrels, to 27.9 million barrels per day.