EIA revises oil prices forecasts

US Energy Information Administration (EIA) forecasts North Sea Brent crude oil prices to average $61 per barrel in 2015 and $70 per barrel in 2016, according to the EIA’s Short-Term Energy Outlook (STEO). These figures are $1 per barrel higher and $5 per barrel lower than in last month’s STEO, respectively.

Average WTI prices in 2015 and 2016 are expected to be $6 per barrel and $5 per barrel below Brent, respectively.

Brent crude oil prices averaged $60 per barrel in April, a $4 per barrel increase from March and the highest monthly average of 2015, according to EIA.

“Despite increasing global inventories, several factors contributed to higher prices in April, including indications of higher global oil demand growth, expectations for declining U.S. tight oil production in the coming months, and the growing risk of unplanned supply outages in the Middle East and North Africa,” the EIA said.

Oil futures settled above $60 a barrel on Tuesday — at their second-highest level of the year.

On the New York Mercantile Exchange, June futures for WTI rose $1.5 to settle at $60.75 a barrel. That was the highest since May 6. Brent crude for delivery in June increased by $1.95 to $66.86 a barrel on London’s ICE Futures exchange.

SOURCE: Azer News