Energy Preview: EIA Expects Brent Crude To Average $90 Per Barrel In February

9 Feb 2022 , 09:11 AM

The US EIA stated yesterday in its Short Term Energy Outlook (STEO) that Brent crude oil spot prices averaged $87 per barrel (b) in January, a $12/b increase from December 2021. Crude oil prices have risen steadily since mid-2020 as result of consistent draws on global oil inventories, which averaged 1.8 million barrels per day (b/d) from the third quarter of 2020 (3Q20) through the end of 2021. EIA estimates that global oil inventories fell further in January?compared with expectation of an increase in last months STEO?and that commercial inventories in the OECD ended the month at 2.68 billion barrels, which is the lowest level since mid-2014. Oil prices have also risen as result of heightened market concerns about the possibility of oil supply disruptions, notably related to tensions regarding Ukraine, paired with receding market concerns that the Omicron variant of COVID-19 will have widespread effects on oil consumption. EIA expects Brent prices will average $90/b in February as continuing draws in global oil inventories keep crude oil prices near current levels in the coming months.

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