EIA revises down Brent price forecast by $18 for 2020

Baku, March 13, AZERTAC The U.S.' Energy Information Administration (EIA) has revised down its Brent crude oil price forecast for 2020 by $18 per barrel, according to its monthly Short-Term Energy Outlook (STEO) report for March released on Wednesday, Anadolu Agency reports. The international benchmark is now expected to average $43 per barrel this year, down from its previous estimate of $61 a barrel. While Brent crude is forecast to average $37 per barrel during the second quarter of 2020, then it is anticipated to average $42 per barrel during the second half of the year. The EIA said it forecasts Brent crude price increasing to an average of $55 per barrel in 2021, as "declining global oil inventories put upward pressure on prices." Price of Brent crude plummeted to $31 per barrel on Monday to mark its lowest level in four years after Saudi Arabia-led OPEC, together with Russia-led non-OPEC, failed to reach a deal to curb their oil production levels against the negative impact of coronavirus on low oil demand around the world. "OPEC will target market share instead of a balanced global oil market," the EIA said in its STEO report. "EIA forecasts OPEC crude oil production will average 29.2 million barrels per day (bpd) from April through December 2020, up from an average of 28.7 million bpd in the first quarter of 2020," the report said. For 2020, the administration forecasts OPEC crude oil production will rise to an average of 29.4 million bpd in 2021.