Forecasting oil prices according to international benchmark Brent crude by the US Energy Information Administration (EIA)
According to The US Energy Information Administration (EIA), The forecast for the global crude oil price is dramatically raised from the 2022 forecast by around 27%. The EIA regulated the spot price of Brent crude by $22 per barrel to an average of $105.22 per barrel, together with the American benchmark West Texas Intermediate (WTI) at $101.17 a barrel. Moreover, The higher price of Brent crude forecast was partly related to uncertainties that resulted from the invasion of Russia in Ukraine. Until 2023, the EIA predicts that Brent will decline to $88.98 per barrel, while WTI will fall to $84.98 a barrel. Nonetheless, the EIA cautioned that the price forecast is “highly uncertain,” due to the protracted uncertainties-impact of the Russia and Ukraine situations. Not only will the other oil producers respond to current oil prices, but also the macroeconomic development impact which will be affected by the oil price as well. “Although we reduced Russia’s oil production in our forecast, we still expect that global oil inventories will build at an average rate of 500,000 barrels per day (bpd)