Global VLSFO prices have dropped relative to Brent in the second half of this year. Image Credit: Ship & Bunker
The US Energy Information Administration (EIA) has raised its forecast for average Brent crude prices next year.
The EIA now forecasts Brent to average at $102.13/bl this year and $95.33/bl next year, it said in its Short-Term Energy Outlook report this week. In last month's report its 2023 price forecast was $94.58/bl.
In 2022 global average VLSFO prices have been at an average premium to Brent futures of $93/mt, according to Ship & Bunker's G20-VLSFO Index of average prices across 20 leading bunkering locations.
Applying that premium to the EIA's new 2023 Brent forecast would put average global VLSFO prices next year at about $811/mt.
The EIA forecasts OPEC crude oil production to average at 28.9 million b/d next year.
