The European Commission (EC) used in the winter macroeconomic forecast higher annual average prices for Brent crude – $68,3 per barrel in 2018 and to $64.2 a barrel in 2019.
In November, the European Commission expected increase in average prices Brent us $53.6 per barrel in 2017 to $55,7 per barrel in 2018. In 2019, was expected to decline to $54.7 per barrel.
As noted by the EC, geopolitical tensions in the middle East and the extension of the agreement of OPEC, Russia and other oil producers on the limitation of its production contributed to the increase in prices for Brent to $70 per barrel in January.
“However, further price increase is more limited, because high oil prices will weigh on growth in global demand. In addition, it is expected that the producers outside OPEC, especially the US, will increase production,” – said in a forecast.
Read the news also on the website “Energoinform”
In their assessments the Commission considers the situation in the oil futures market.
As expected, the enhancement of the growth of oil prices will have a positive impact on inflation in the Euro area and the EU as a whole, which remains below the target level of the Central banks, despite the rapid recovery of the economy.