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US revises 2023 oil price forecast upwards

The U.S. Energy Information Administration (EIA) revised its oil price forecast upwards for this year, with the prediction that demand will increase in China, the world’s largest oil importer.

In the “February 2023 Short-Term Energy Outlook Report” of the EIA, it was estimated that the average barrel price of Brent crude oil for this year would be $83.63. This figure was $83.10 in the January report.

In the report, it was predicted that the price of a barrel of West Texas type (WTI) crude oil will be $77.84 for this year. The barrel price of WTI was estimated at $77.18 in January.

The barrel price of Brent crude oil is expected to be $77.57 next year, and the price of WTI crude oil is expected to be $71.57 next year.

In the report, which pointed out that the main uncertainties in the oil market last month were the oil demand in China and Russia’s oil production, it was stated that the demand and production outlook of the two countries was reconsidered in this month’s forecasts.

In the report, it was noted that China’s oil demand growth forecast increased this month and Russia, which produced more than expected in January, is expected to increase its production by the end of 2024.

US crude oil production expected to rise

According to the report, the average daily crude oil production in the USA is expected to be around 12 million 490 thousand barrels this year. Last year, this figure was recorded as approximately 11 million 900 thousand barrels. It is estimated that the production will increase to 12 million 650 thousand barrels in 2024.

It is estimated that the global oil supply will be 101 million 100 thousand barrels per day this year and 102 million 610 thousand barrels next year.

In the report, it was stated that the annual production of petroleum and petroleum products by the Organization of Petroleum Exporting Countries will reach 34 million 80 thousand barrels per day this year and 34 million 770 thousand barrels per day next year. It is estimated that the crude oil production of the group will be 28 million 660 thousand barrels this year and 29 million 310 thousand barrels next year.

Global oil demand is expected to reach 100 million 470 thousand barrels per day this year. It is predicted that this figure will be 102 million 260 thousand barrels next year.

Source: Trthaber / Prepared by Irem Yildiz

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