At the same time, the department maintained the Brent cost estimate for 2023 at $97.24 per barrel.
“Current oil inventory levels are low, which amplifies the potential for oil price volatility. Actual price outcomes will largely depend on the degree to which existing sanctions imposed on Russia, any potential future sanctions, and independent corporate actions affect Russia’s oil production or the sale of Russia’s oil in the global market,” the report says. “The Brent crude oil spot price averaged $113 per barrel in May. We expect the Brent price will average $108/b in the second half of 2022 and then fall to $97/b in 2023.”
