Crude Oil Prices are expected to average $73 per barrel in the second half of 2018 then fall to $69 per barrel in 2019, forecast from the Chamber of Bulk Oil Distributors have shown.

According to the forecast, WTI crude oil prices would average $7 per barrel lower than Brent prices in the second half of 2018 and same in 2019.

The forecasts also shows a growth in global oil demand by 1.4million barrel per day in 2018 and by the same amount in 2019.

Crude oil price movement

The average Brent and WTI crude oil price started the year at USD69.08 per barrel and USD 63.7 per barrel in January respectively.

Crude oil prices for the month of August averaged at USD 71.07 per barrel  and USD 67.35 per barrel for Brent and WTI respectively, marking a 4% and 5% month-on-month decrease.

The average Brent and WTI crude oil price increased by approximately 39% and 35% year on-year for the month of August respectively. The average Brent and WTI crude oil price respectively increased by 3% and 6% year-to-date in the month of August.

FOB Prices

In the July 2018 update of EIA’s Short-Term Energy Outlook (STEO), it forecasts that Brent.

The year-to-date average prices of gasoline and gasoil stood at $680.56 per metric tonne and $627.89 per metric tonne respectively representing a 27% and 37% increase in both gasoline and gasoil prices relative to same period last year.

The International Market Price (IMP) began the first window of 2018 at $600.11 per metric tonne and $568.72 per metric tonne for gasoline and gasoil, respectively.

Prices hit the $700 per metric tonne mark in the month of May. This was as a result of geopolitical shifts including President Donald Trump’s announcement of the US withdrawal from the Iran nuclear deal and subsequent sanction of Iran as well as missiles targeted towards Saudi Aramco’s energy facilities by Yemen’s Houthis.

The year-to-date average inter window (first and second half of every month) stood at 1% for both gasoline and gasoil.

Source: citibusinessnews.com