The US Department of Energy (DOE) slightly increased its forecast for Brent crude oil price for 2023 from $83.1/bbl to $83.63/bbl, according to the monthly EIA outlook data. The agency left the 2024 price forecast unchanged at $77.57/bbl.

The EIA estimated that the average Brent spot price in January was about $82/bbl, about $2 higher than in December 2022.

The agency notes that the rise in oil prices over the past month is due to expectations of increased demand amid easing of coronavirus restrictions in China, as well as an improvement in a lot of macroeconomic factors.

The forecast for global oil consumption in 2023 remains unchanged

World oil and liquid hydrocarbon consumption in 2023 will be 100.48 million barrels per day, the forecast said.

EIA has maintained its forecast announced in January, adjusting it by only 10 thousand bpd. The ministry also changed its 2022 oil demand estimate, lowering it by 70,000 bpd from 99.43 million bpd to 99.36 million bpd.

Thus, the U.S. Department of Energy expects global oil consumption in 2023 to increase by 1.11 million bpd compared to last year. However, the agency notes that the forecast remains uncertain because “China is abandoning its zero COVID-19 policy and global economic conditions are changing. The 2024 oil consumption forecast is adjusted upward by 60,000 bpd to 102.26 million bpd.

Earlier, we reported that oil prices continued to fall: Brent crude oil prices fell below $82 per barrel.