US Predicts Brent Crude Price to Cost $40.52 Per Barrel in 2016

The US Energy Information Administration (EIA) initially predicted in April that the average oil price will reach only $34.73 per barrel.

MOSCOW (Sputnik) – The average price for Brent Crude oil in 2016 will amount to $40.52 a barrel, the US Energy Information Administration (EIA) said in its Short-Term Energy Outlook report issued on Tuesday.

The EIA reviewed its previous forecast by almost $6 after in its April report it estimated that the average oil price will reach only $34.73 per barrel.

"Improving economic data, growing supply disruptions, and falling U.S. crude oil production and rig counts contributed to the price increase," the EIA said in the report adding that the Brent average price in April amounted to $42 per barrel which is $3 higher than in March.

The EIA has also changed its forecast concerning the Brent price in 2017, raising April price estimate from $40.58 per barrel to $50.65.

The West Texas Intermediate (WTI) oil price forecast has also been corrected – the expected average price in 2016 is $40.32 per barrel. The EIA believes that in 2017 the average prices of WTI and Brent Crudes would be equal.