EIA expects oil oversupply, price drop10 Feb 2022 07:39
The EIA expects a decline in Brent oil prices due to increased supply. He estimates that the prices, which he expected an average of $90/barrel in February, will decline to $75/barrel in the last quarter of this year.
In the short-term energy outlook data released by the Energy Information Administration (EIA), affiliated with the US Department of Energy, OPEC+ expects downward price pressures in mid-2022 as the increase in US and other non-OPEC oil production exceeds the increase in consumption. It also predicts that oil stocks will increase from the second quarter of 2022 until the end of 2023.
Pointing out that there has been an increase in oil prices since mid-2020 due to the decrease in stocks, EIA stated that oil prices increased by 12 dollars per barrel in January 2022 compared to the previous December and reached an average of 87 dollars/barrel. EIA, which expects the average price of Brent oil to be around $90/barrel in February due to the decrease in stocks, estimates it to be around $88/barrel in the first half of this year.
2023 PRICE EXPECTATION 68 DOLLARS/BARREL
EIA estimates that the spot price of Brent oil will average $87/barrel in the second quarter of 2022 and $75/barrel in the last quarter of 2022, depending on the increase in production. In 2023, it expects the price to decrease to an average of $68/barrel.
But it won't make any difference to the SP here unless they produce copious amounts of oil imo. It is going to take some doing to get back to the March 21 figure whilst POO continues to rise and flow rates falter.
Mar 21 105 $212195 65.19
Apr 21 101 $196253 64.77
May 21 100 $210924 68.04
Jun 21 95 $208249 73.07
Jul 21 92 $212160 74.39
Aug 21 82 $178002 70.02
Sep 21 45 $100710 74.60
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