The price of oil fell by $85 a barrel on Friday morning. US authorities believe that the price of Brent oil will remain at $80 annually.
The price of North Sea oil (Brent) has reached its highest level in three years with the price of North Sea oil reaching over 85 years. Oil is in its eighth week of price growth, the longest continuous rise in the price level since 2015.
The high demand for energy and the high prices of many important energy sources have led to higher prices.
The rise in gas prices also contributed to the increase in the profitability of using oil to produce electricity. Natural gas prices have more than doubled in the past year, but with winter approaching, it is estimated that the peak has not yet been reached. Bloomberg.
On Friday night, just before 10pm, the price of Brent crude was $84.72 a barrel.
Fixed price evolution throughout the year
The US Department of Energy’s statistics department, EIA, on Thursday released new oil price forecasts, in its latest issue of the report Short Term Energy Outlook (STEO).
The EIA estimates that Brent prices will remain stable around current levels for the remainder of 2021. The price is estimated to average $81 per barrel in the fourth quarter, $10 higher than initially expected.
Earlier in October, oil prices rose as the Organization of the Petroleum Exporting Countries and its partners, OPEC+, agreed to keep production targets unchanged. The group, led by Russia and Saudi Arabia, has been blocking oil from the market since the pandemic hit to support below the price.
Oil prices rise after the OPEC agreement
Production growth in OPEC+, USA and non-OPEC countries is expected to go faster than global oil consumption, thus contributing to the decline in Brent price to an annual average of $72 per barrel.
The EIA is also increasing its Brent crude spot price forecast for 2021 and 2022 in the latest edition of its STEO. The average spot price in 2021 will be $71.38 per barrel, an upward adjustment from $68.81 per barrel. The estimate for 2022 is now $71.91 a barrel, which is an upward adjustment from $66.04.
At the same time, the EIA confirms that there is some uncertainty surrounding the elevated levels, due to the ongoing recovery after the coronary epidemic.
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