The targeted oil production in April is 41,694m b/d for the 20 OPEC+ member countries.
The Organisation of the Petroleum Exporting Countries (OPEC) has agreed to raise oil production in April to meet rising global demand.Īccording to the OPEC meeting on 2 March, members and non-members have reaffirmed their agreements to raise monthly overall oil output by 0.4m barrels/day in April. OPEC raises oil production from April onwards
However, the EIA said its predicted oil prices are “highly uncertain” as the “actual price outcomes will be dependent on the degree to which existing sanctions imposed on Russia, any potential future sanctions, and independent corporate actions affect Russia’s oil production or the sale of Russia’s oil in the global market.”Īdditionally, responses from other oil producers to the current prices and macroeconomic developments are also key drivers of oil prices in the coming months, said EIA. The Brent crude futures are traded on the Intercontinental Exchange (ICE). WTI is the benchmark crude for North America while Brent crude oil is traded internationally with varying delivery locations. The average WTI crude oil prices were projected at $101.17/bbl in 2022 and $84.98/bbl in 2023. It expected the average Brent crude prices at $105.22/bbl in 2022 and falling to $89/bbl in 2023. The EIA forecast Brent crude oil prices could average at $117 per barrel (bbl) in March, $116/bbl in the second quarter and $102/bbl in the second half of the year. The previous annual-average record production was 12.3m b/d in 2019, according to EIA. The average crude oil production in the US is expected to rise to 12.0m b/d in 2022 and hit a record-high at 13.0m b/d in 2023. “However, if production disruptions - in Russia or elsewhere - are more than we forecast, resulting crude oil prices would be higher than our forecast,” warned EIA. The inventories are expected to put downward pressure on crude oil prices. Oil consumption will depend on how economic activity and travel respond to recent and any potential future events and sanctions.”ĭespite factoring in lower Russian oil production in its forecast, the EIA projects the global oil inventories will build at an average rate of 0.5m b/d from Q2 2022 through the end of 2023.
“The outlook for economic growth and oil consumption in Russia and surrounding countries is highly uncertain. However, the EIA warned the forecast is subject to change as it was completed before the conflict in Ukraine intensified. Try demo Global supply demand outlook clouded by Russia-Ukraine crisisĪccording to the US Energy Information Administration’s (EIA) short-term energy outlook report published on 8 March, the average global consumption of petroleum and liquid fuels is expected to rise to 100.6m barrels a day (b/d) in 2022, up 3.1m b/d or 3% from 2021. However, the US has expressed scepticism over Russia’s promise to scale back military action in the Ukrainian capital of Kyiv.Īre you interested in learning more about what affects oil prices? Read on for analysts’ market outlook for global supply and demand and future crude oil prices. Market participants are closely watching development of the talks between Russia and Ukraine, which could lead to a de-escalation and market stabilisation. Oil prices have gained 36% compared to the beginning of this year. The WTI May 2022 contract traded on the New York Mercantile Exchange ( NYMEX) last settled at $104.24, down 20% from the peak earlier this month but up 0.8% from the beginning of March. A sharp slowdown in mobility in Shanghai, which accounts for 4% of China’s oil consumption, could lower overall consumption in China.”ĭemand concerns along with the potential de-escalation in Ukraine amid negotiations have led to oil prices falling from the peak in early March. “The market is also grappling with the impact of lockdowns in China which are weighing on crude oil demand. Daniel Hynes, senior commodity strategist at ANZ Commodity, said: However, with China imposing new quarantine measures to curb rising Covid-19 cases in several provinces since early March, with Shanghai the latest city to enter lockdown this week, there are growing concerns on lower demand from the world’s largest oil consumer. US30 US Wall Street 30 (USA 30, Dow Jones)