European Commission Raises Brent Crude Oil Average Price Forecast For 2022 To $103.6

The European Commission has raised the forecast for the average annual price of Brent crude oil for 2022 by 1.6 times up to $103.6 per barrel, the European Commission said on Monday

MOSCOW (UrduPoint News / Sputnik - 16th May, 2022) The European Commission has raised the forecast for the average annual price of Brent crude oil for 2022 by 1.6 times up to $103.6 per barrel, the European Commission said on Monday.

In the autumn forecast, the commission expected the 2022 figure at $63.9 per barrel, while the 2023 number was projected at $61.6 per barrel. The updated prognosis suggested that Brent's average price this year will hit $103.6, while the 2023 price could reach $93.5 per barrel.

"Oil markets reacted to news of the withdrawal of important Western oil companies from Russia, the boycott of energy imports by some countries (e.g. the US and the UK), and the decisions of the US to release part of its oil reserves and of OPEC not to increase oil production," the statement read.

Russia launched its military operation in Ukraine on February 24 after the breakaway Donetsk and Luhansk people's republics applied for help in fending off attacks by Ukrainian army.

The United States and the European Union have since been pressuring Russia with economic measures and have rolled out a number of sanctions packages, which include airspace closures and restrictions targeting numerous Russian officials and entities, media, and financial institutions.

On May 4, European Commission President Ursula von der Leyen presented the sixth package of sanctions against Russia. Among other points, it suggested banning Russian oil imports. The package needs to be unanimously approved by EU member states to take effect. Hungary and several other European nations are blocking the decision, opposing the proposed embargo on oil supplies.