Crude prices to remain below $60 per barrel through the end of 2018 – EIA
Almaty. January 26. Silkroadnews – The average crude price is expected to reach $53 per barrel in 2017, $54 at the beginning of 2018 and $59 at the end of 2018, the report by the US Energy Information Administration says, KazTAG writes.
According to EIA estimates, crude oil and other liquid hydrocarbons reserves grew by 2 million barrels per day (b/d) in the fourth quarter of 2016.
“This was due to increased production volumes and significant, though seasonal, decrease in consumption. Through 2018 the agency expects growth of world production and consumption, with consumption expected to grow faster versus production. As a result, the global balances are projected to get narrowed”, report explains.
As noted, increase in production in the fourth quarter of last year grew significantly prior to OPEC decision on production reduction. At the same time, global production is expected to increase by 1.6 million b/d in the fourth quarter of 2016, taking into account the share of OPEC by 0.9 million b/d or 55%. According to agency estimates, total world production at an average of 96.4 million b/d in 2016 will increase to 97.5 million b/d in 2017 and 98.9 million b/d in 2018.
The annual level of oil and liquid hydrocarbons consumption is estimated at 95.6 million b/d in 2016 and is projected to increase to 97.2 million b/d in 2017 and 98.7 million b/d in 2018, the American agency forecasts.
The global reserves are expected to increase by an average of 0.9 million b/d in 2016. Short-term energy outlook points out to annual balances of crude oil at an average of 0.3 million b/d in 2017 and 0.1 million b/d in 2018. By the second half of 2018 the reserves are expected to decline by an average of 0.1 million b/d, EIA says.
