U.S. predicts drop in oil prices in the coming time

The market has adjusted to the supply disruptions caused by such incidents as the attack on the oil processing facilities in Saudi Arabia, according to the Department.

In the US Department of energy expect lower oil prices in the coming months. This is stated in the monthly report of the office for American energy Department (EIA) released Tuesday, October 8, reports the Chronicle.info with reference to korrespondent.net.

EIA forecasts that the spot price of Brent crude oil to average $59 per barrel in the 4th quarter of 2019, and then fall to $57 per barrel in the 2nd quarter of 2020, which is $5 below the forecast made a month ago.

“Despite the recent interruptions in oil supply, EIA expects that in coming months there would be a decrease in oil prices as global reserves will increase in the first half of 2020,” the report says.

Thus in EIA believe that Brent prices will rise to an average $62 per barrel in the second half of 2019. The projected average price in 2020 will be $60 per barrel, or $2 per barrel lower than the September forecast EIA.

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“The October forecast, the EIA recognized a higher level risk of a disruption of oil supplies than previously thought, more than compensated the growing uncertainty about economic growth and oil demand in the coming quarters, leading to lower forecast oil prices”, – reported in the report.

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