Oil prices are likely to remain at current highs in March and April, with Brent Crude prices averaging between $ 65 and $ 70 a barrel after the OPEC + group unexpectedly decided to maintain production cuts in April, the administration said. US Energy Information Agency (EIA). Wednesday.
In its short-term energy outlook (STEO) for March, the EIA expects Brent prices to average $ 65 to $ 70 a barrel in March and April, with more than $ 10 a barrel above the February forecast. due to the fact that OPEC + keeps a tight brake on production in April.
Earlier this month, the OPEC + alliance decided not to increase production since April, except for small increases for Russia and Kazakhstan, while OPEC’s largest producer and de facto leader, Saudi Arabia, retains its additional reduction of 1 million. by bpd in april. This was contrary to the expectations of the market revolving around the group, reducing the reductions by 500,000 bpd, and the Saudis reversing the additional reduction.
For the second quarter of 2021, the EIA sees Brent prices averaging $ 64 per barrel and then averaging $ 58 per barrel in the second half of 2021, as downward price pressures are expected to occur in the next half. Monday, as the oil market becomes more balanced.
Wood Mackenzie expects oil prices to rise to $ 70-75 a barrel during April, and the stock attracts significantly more than 1 million bpd next month as the summer demand season approaches.
Similar video: Why the oil and gas platform matters
“The risk is that these higher prices will diminish the attempt at a global recovery. But Saudi Energy Minister Prince Abdulaziz is convinced that OPEC + must follow the concrete signs of growing demand before production can begin, “said Ann-Louise Hittle, vice president, Macro Oils, at Wood Mackenzie after the OPEC + meeting in This year. month.
Following OPEC + ‘s surprise decision to keep oil production flat in April, Goldman Sachs now sees Brent prices hitting $ 80 a barrel in the third quarter of this year and $ 75 in the second quarter, up $ 5 from the previous forecast issued just two weeks before.
By Charles Kennedy for Oilprice.com
More top readings from Oilprice.com: