Majlis Forecasts Oil to Average $54 Next Year

The Majlis Research Center has predicted Iranian crude oil to sell at an average price of $54 per barrel in the next fiscal year that starts in March.

According to its report, in spite of the volatility in oil prices in 2017, the country's crude oil up to the end of November averaged a 22% rise compared with the same period of last year, Shana reported on Tuesday.

Considering several variables, crude prices are projected to have an upward trajectory, the report said, adding that although Brent, the international benchmark for crude prices, is predicted to slightly decline in the 2018’s first half, it will regain strength in the next six months.

The report said Brent crude is predicted to average at $56 per barrel in 2018, while the benchmark is expected to fetch $55, $53, $57 and $59 per barrel in the fourth quarters of the current fiscal year (started Dec. 22), respectively.

“Assuming that Iran’s crude oil and condensate exports will register a daily average of 2.55 million barrels in the next fiscal, oil revenues will reach close to $50 billion at the rate of $54 per barrel,” the report said.

Iran's light crude made small gains in the week to Dec. 22, increasing by 13 cents to reach $63.36 per barrel in the week, averaging $52.2 in 2017.

One of the country's main grades for export, Iran Heavy, settled up 52 cents at $61.01, breaking through the $60 barrier for the first time last year. Brent crude ended the week at $64.04, or 6 cents lower compared with the previous week.

Brent crude futures ended the year with a 17% rise, supported by ongoing supply cuts by top producers OPEC and Russia as well as strong demand from China.