Oil Prices Drop to Levels Not Seen in Months
Brent crude and West Texas Intermediate (WTI) oil prices both dropped to levels not seen in months on Thursday.
Brent closed at $94.12 per barrel and WTI closed at $88.54 per barrel on August 4. Thursday’s close marked the first time Brent and WTI have finished the day’s trading under $95 per barrel and $89 per barrel, respectively, since February this year.
At the time of writing, the price of Brent crude was trading at $94.66 per barrel, while the price of WTI was trading at $89.07 per barrel. After starting December at under $70 per barrel, Brent soared to $127.98 per barrel on March 8. During the same timeframe, the price of WTI rose from under $67 per barrel to $123.7 per barrel.
Russian forces escalated a conflict with Ukraine near the end of February this year, which saw both Brent and WTI prices rise.
According to the U.S. Energy Information Administration’s (EIA) latest short term energy outlook (STEO) which was released in July, the EIA sees Brent and WTI spot prices averaging $104.5 per barrel and $98.79 per barrel this year, respectively. Brent spot prices are expected to dip to $93.75 per barrel in and WTI spot prices are expected to drop to $89.75 per barrel in 2023, the STEO highlighted. The 2021 Brent spot average price was $70.89 per barrel and the 2021 WTI spot average price was $68.21 per barrel, the EIA pointed out in its latest STEO.
The EIA highlighted that its July STEO was subject to heightened uncertainty “resulting from a variety of factors, including Russia’s full-scale invasion of Ukraine”.
“The possibility of economic activity being less robust than assumed in our forecast could result in lower-than-forecast energy consumption. Factors driving uncertainty about energy supply include how sanctions affect Russia’s oil production, the production decisions of OPEC+, and the rate at which U.S. oil and natural gas production rises,” the EIA noted in its July STEO.
To contact the author, email andreas.exarheas@rigzone.com
What do you think? We’d love to hear from you, join the conversation on the
Rigzone Energy Network.
The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- Analyst Says USA Influence on Middle East Seems to be Fading
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally