Brent and WTI crude prices will continue to fall in the fourth quarter of 2013 and into 2014, the US Energy Information Administration said Tuesday.
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Brent prices, which fell from a recent peak of $117/b in early September to $108/b at the end of the month as Libyan production restarted and concerns over the conflict in Syria moderated, will continue to weaken as non-OPEC supply grows, the EIA said in its October Short-Term Energy Outlook.
The agency, which represents the independent statistical arm of the US Department of Energy, said it expects Brent to average $106.50/b during the fourth quarter, for a full-year average of $107.96/b. For 2014, the average price will decline to $102.21/b, the EIA said.
Meanwhile, WTI, which averaged $106/b in September, will average $100.50/b in the fourth quarter, for a full-year 2013 average of $98.69/b, the EIA estimated. For 2014, WTI will decline to $96.21/b, the EIA said.
The agency said it expects WTI's discount to Brent to average $6/b during the fourth quarter and in 2014. The spread had widened to an average of $18/b in 2012 and then fell to $3/b in July.