Brent crude, the world's oil benchmark, will average $105.22 a barrel this year, the Energy Information Administration of the US Department of Energy said on Tuesday. The forecast is 27% more than the agency’s previous estimate of $82,87 a barrel.
In its monthly Short-Term Energy Outlook report, the EIA also lifted its 2022 forecast for West Texas Intermediate crude prices to $101.17 a barrel, up 27.5% from its previous forecast.
Brent spot prices averaged $97 a barrel in February, up $11 from January, the EIA said adding that the rise in oil price was mainly caused by situation in Ukraine.
The US agency expects Brent price to average $117 a barrel in March, up 30% from the February forecast.
The May futures for Brent oil on London's ICE Futures exchange by midday on Wednesday were trading at over $126 per barrel.