Global Oil Benchmark Brent Seen Just Under $80/Bbl In Second Half After Saudi Cut - US EIA

Global Oil Benchmark Brent Seen Just Under $80/Bbl in Second Half After Saudi Cut - US EIA

Global crude oil benchmark Brent is expected to average at just below $80 per barrel in the second half of this year and under $85 in 2024, the US Energy Information Administration said Tuesday in a forecast published on the heels of another production cut announced by Saudi Arabia

WASHINGTON (UrduPoint News / Sputnik - 06th June, 2023) Global crude oil benchmark Brent is expected to average at just below $80 per barrel in the second half of this year and under $85 in 2024, the US Energy Information Administration said Tuesday in a forecast published on the heels of another production cut announced by Saudi Arabia.

"EIA forecasts Brent crude oil spot price will average $79 per barrel in the second half of 2023 (2H23) and $84/b in 2024," the agency said in its Short-Term Energy Outlook, published each month.

EIA also forecast that the spot price of West Texas Intermediate, or WTI, which serves as the leading crude product for the United States, will average $73.86 for the rest of 2023 and $78.50 for 2024.

Saudi Arabia's energy ministry said on Sunday the kingdom's oil output will drop to 9 million barrels per day in July, as it accounted for an additional million barrels per day it will cut next month amid active summer travel and energy consumption in the Northern Hemisphere.

Since October, the Saudis have been producing 1.5 million barrels below their regular average daily production of 11.5 million. Their latest maneuver appeared aimed at lifting Brent from mid-$75 levels and WTI from the low $70s.

Oil revenue is the lifeblood of the economies in OPEC, or the Organization of the Petroleum Exporting Countries, a 13-member Saudi-led group whose main objective is to be the price-setter of the commodity. Ten other oil producing states, including Russia, that aren't OPEC members have also been keeping their output closely in line with the group's for the sake of price. The 23-nation alliance is collectively known as OPEC+.

Over the past eight months, OPEC+, led by Saudi Arabia has announced two production cuts totaling 3.7 million barrels per day, without much to show for in prices.