EIA Forecasts Recovery in Brent Crude Prices to Above $80/bbl

SEATTLE (Scrap Monster): In its September Short Term Energy Outlook (STEO) report, the U.S. Energy Information Administration (EIA) forecast that Brent oil prices would rise to more than $80 per barrel this month. On September 6, 2024, the price per barrel had plummeted to $73. Additionally, it is anticipated that the spot price will average $82 per barrel in Q4 of this year.

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Because to production curbs by OPEC+ countries, it is anticipated that world oil consumption would surpass global oil production, resulting in a decline in global oil reserves, according to the IEA. It should be mentioned that the OPEC+ nations declared last week that the production increases that had been previously scheduled would now take place in December 2024. The production increases were originally scheduled to start in October.

The agency projects that market concerns, such as rising Chinese demand and Middle Eastern supply interruptions, will cause oil prices to fluctuate.

The STEO projects that Henry Hub natural gas prices will follow a comparatively stable trajectory until the end of 2024 before rising in 2025. In 2025, it is anticipated that the United States will produce approximately 105 billion cubic feet of natural gas per day. The U.S. natural gas storage capacity will be under pressure from the anticipated over 2 billion cubic feet per day of LNG exports starting next year, according to the EIA.