2024 oil prices will stay around $80/b because of the weak demand

 2024 oil prices will stay around $80/b because of the weak demand

2024 oil prices will stay around $80/b because of the weak demand

Reuters Poll: As poor global growth is countered by geopolitical conflicts that reduce demand, analysts predict that worldwide oil prices will linger around $80 a barrel in 2024.

A Reuters survey predicts that in 2024, oil prices will likely stay around $80 per barrel globally. The slowdown in global growth, which is counterbalanced by persistent geopolitical tensions, is attributed by analysts to the drop in demand.

According to a Reuters survey conducted on Friday, economists anticipated that poor global growth will constrain demand for oil, but geopolitical concerns might give support, meaning that worldwide oil prices in 2024 are likely to stay around $80 per barrel.

The ability of the Organization of the Petroleum Exporting Countries and Allies (OPEC+) to maintain production reductions in order to support the market was questioned by analysts.

Since the beginning of the year, the global benchmark Brent oil price has averaged around $82.17 per barrel. It was anticipated that this price decline would be more than 9% yearly owing to the strengthening US currency, rising interest rates, and sluggish demand from China, the top consumer.

According to a poll of 34 experts and economists, Brent crude will average $82.56 in 2024 as opposed to the $84.43 consensus from November. Just one participant anticipated that costs will average more than $90 in the next year.

US oil is expected to average $78.84 in 2019, up from $80.50 in the previous month.

According to Nord LandsBK analyst Thomas Wybierek, "we do not expect much stimulus on the demand side in the coming months."

"The supply side is currently under investigation. Many question if the OPEC+ partnership would be able to curtail output as agreed lately."

With Saudi Arabia leading the way and abandoning its existing voluntary production cuts to support the market, OPEC+ oil members decided last month to begin a voluntary production reduction of around 2.2 million barrels per day early in 2019.

OPEC+'s production is being reduced by around 6 million barrels per day, and its market share has dropped to 27%.

John Pacey, president of Stratus Advisors, said, "While it is challenging to maintain cooperation with every one of the members of OPEC+ - at this moment in time and price level - all members are supporters of higher oil prices."

Geopolitical concerns, according to survey analysts, will continue to drive fluctuations in oil prices in the next months.

"We believe that geopolitics will be a bigger concern in 2024 than it was in 2023, and there will be a significant increase in the associated risk premium," said Pacey.

Israel and Hamas' military skirmishes have sparked worries that a bigger battle may disrupt supplies from the Middle East, which is the world's biggest oil supply area. Recent ship assaults in the Red Sea pose a danger to international trade.