Daily Management Review

US Energy authority expects growing global oil reserves


Despite lower oil production projections for Russia, the US Ministry of Energy predicts a 0.5 million barrel per day increase in global oil reserves starting in the second quarter of 2022.

The statement is supported by data from the Ministry of Energy (EIA)'s monthly short-term forecast.

"Although we have cut our expectations for Russian oil output in our forecast, we still anticipate global oil reserves to expand by 0.5 million barrels per day on average from the second quarter of 2022 to the end of 2023, as previously expected. Oil prices will be under downward pressure, according to our forecast. However, if production failures - whether in Russia or elsewhere - are more severe than we expect, oil prices will rise above our present prediction" the paper reads.

In addition, the US Department of Energy Information (EIA) cut its projection for the average price of Brent oil for the current year to 103.37 dollars per barrel from 105.22 dollars previously, according to the EIA's monthly short-term forecast.

source: bloomberg.com