According to analysts TeleTrade, it is likely that the price of Brent crude oil will go down dramatically in the second half of 2014. This development is perhaps due to the fact that a strong supply and weak demand will outweigh concerns about political instability.
These assumptions are confirmed by the Reuters poll conducted last week. Brent crude oil price in 2014 is 105.9 dollars per barrel. She is now at the level of 108.2 dollars / barrel. To show a yearly average , in the remaining 7 months of 2014 , the average price of oil should be at 104.26 USD / barrel. In 2015, the average price for the year is expected to reach 102.5 dollars / barrel, and in 2016 – to fall to 100.5 dollars / barrel. The increase in supply of oil will grow by increasing the scale of production in Libya, Iran and Iraq , analysts predict TeleTrade.
As for consumption , its growth will be weak due to weak economic growth. In addition, the volume of demand will push measures to increase energy efficiency , the transition of the consumers of natural gas . The spread between the Brent and West Texas Light will be narrowed because the U.S. will rely more on domestic production .