Oil prices tumbled in 2023 as OPEC+ lose grip

2024-01-02
Summary:

In 2023, oil prices plunged by 10% due to geopolitical turmoil and global concerns over major producers' output levels, marking a tumultuous year.

Oil prices lost over 10% in 2023 in a tumultuous year of trading marked by geopolitical turmoil and concerns about the oil output levels of major producers around the world.

A Reuters survey of 34 economists and analysts forecast Brent crude will average $82.56 in 2024, down from November's $84.43 consensus, as they expect weak global growth to cap demand.


Investors cast doubt on OPEC+’s supply cuts aiming to stabilise the oil market after Angola’s exit from the group. The cartel’s global market share has fallen to the lowest since the pandemic due to a string of cuts.


Energy firms last week added oil and natural gas rigs for the first time in three weeks, energy services firm Baker Hughes said in a report on Friday, indicating output could rise in the future.


Both the US and Canada produced record amounts of oil and gas last year, S&P Global Commodity Insights said. Brazil may also have hit a new record of production in 2023.


Iran's Alborz warship has entered the Red Sea, after the US said it had sunk three ships, killing 10 Houthi militants. Maersk paused all sailing through the Red Sea again as its vessel was attacked by Houthi militants on 30 Dec.

XTIUSD

WTI crude’s descending channel is well respected and it has been down more than $3 since the formation of a dead cross. Another drop will expose the support around $70.


Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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