The geopolitical situation and concerns over oil production led to frantic trading in 2023, underpinning the price decline later in the year.
Prices for benchmark oil futures Brent and WTI fell 10% by the end of 2023, falling to their lowest levels since 2020. Reuters reported this.
It was noted that on the last trading day of 2023, December 29, the price of Brent oil was $77.04 per barrel, while that of WTI was $71.65 per barrel. In both cases, prices fell by more than 10% compared to 2022, a year in which oil prices rose.
The geopolitical situation and concerns over oil production have reportedly led to crazy trading in 2023, underpinning price declines later in the year.
US oil production fell slightly in October 2023 to 13.248 million barrels per day.
OPEC+ cut production by about six million barrels per day, about 6% of global supply.
Experts forecast Brent crude will average $82.56 in 2024, down from a November forecast of $84.43, as weak global economic growth is expected to limit oil demand. Geopolitical tensions can support prices.
At the same time, experts doubt the ability of OPEC countries to comply with agreements to reduce oil production. OPEC is expected to see a slowdown in demand for its oil in the first half of 2024. After a drop in production volume and Angola’s withdrawal from OPEC, it is reducing its share of the global market.
In addition, global prices will also be affected by the geopolitical situation in the Middle East. The ship attacks in the Red Sea caused major companies to think about an alternative Suez Canal across Africa.
We remind you that the Russian Federation has recognized its complete dependence on India and China in the oil market.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.