Market Speaks: Brent Crude To Average $95 Per Barrel In 2023 Says EIA

18 Aug 2022 , 04:25 PM

The US EIA noted in a latest update that changes to both production and consumption of global liquid fuels have changed forecast for balances between the two for the rest of 2022 and 2023. For most of 2021, more liquid fuels were consumed globally than produced. Starting in the second quarter of 2022, global liquid fuels production rose above consumption. According to August Short-Term Energy Outlook, it is expected that during 2023, global supply and demand will be very closely matched. EIA forecast production in 2023 to average 101.3 million barrels per day (b/d) and consumption to average 101.5 million b/d. When consumption of liquid fuels is higher than production, prices generally rise. When production is more than consumption, prices generally decline. Due to changes in supply and demand in mid-2022, it forecast that the price of Brent crude oil will average $105 per barrel (b) in 2022 and $95/b in 2023. The price of crude oil directly affects the price of petroleum products. Powered by Commodity Insights