UN projects Brent oil price at $52.5 in 2017, $55.4 in 2018

MOSCOW, Dec 13 (PRIME) -- The United Nations Organization expects the Brent oil price to rise gradually from U.S. $52.5 per barrel in 2017 to $55.4 in 2018 and $59.7 in 2019, it said in the World Economic Situation and Prospects 2018 report on Wednesday.

“The oil market is in the process of rebalancing, as demand growth surpasses supply growth. The level of commercial crude oil stock has already been in decline despite rapid crude production growth in the United States. The market is likely to rebalance by the first quarter of 2018, eroding the excess crude oil inventory built up since 2014,” the document read.

“Crude oil supply from non-OPEC countries in 2017 is forecast to increase, driven by the United States. In total, world crude oil supply for 2017 is expected to record a modest rise from 2016 levels.”

Strong demand is expected from China, India and the United States — the world’s three largest energy consumers. A recovering demand from Europe is another supporting factor for the solid growth projection coupled with the recent rise in refining margins in Asia, Europe and the Americas throughout 2017, the UNO said.

In November 2016, OPEC and non-OPEC states agreed to reduce their oil production to rebalance the market. Russia joined the agreement in December 2016 with a promise to cut output by 300,000 barrels daily compared with the level of October 2016. The agreement was initially concluded for January–June, prolonged for nine more months in May and then until the end of 2018 in November.

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