Saturday 23 Nov
Oil prices edged higher on Monday, but geopolitical tensions and weakening demand continue to tug the market in opposite directions. While escalating tensions between Russia and Ukraine provided some upward pressure, concerns over slowing Chinese fuel consumption and a potential global oil surplus limited the market's upside.
Despite these challenges, persistent geopolitical risks and ongoing production cuts by OPEC+ are expected to support oil prices in the coming months. Brent crude is projected to average $78 per barrel in the first quarter of 2025.
Last Friday, oil prices closed
2.5% lower, marking a weekly decline amid broader concerns about weakening
global demand. As of 06:36 GMT (09:36 Mecca time), Brent crude futures for
January 2025 delivery rose 0.10% to $71.11 per barrel. Simultaneously, West
Texas Intermediate (WTI) crude futures for December 2024 delivery declined
0.06% to $66.98 per barrel
A gloomy outlook for oil prices
has emerged, with both benchmark crude grades ending the previous week lower
and the EIA slashing its 2025 price forecasts. Brent crude fell 3.8% and WTI
crude fell 4.77%.
The U.S. Energy Information Administration (EIA) lowered its oil price forecast for 2025, citing expectations of a $71.60 per barrel average spot price for WTI in 2025. This represents a 2.1% decrease from October 2024 estimates. The EIA also reduced its Brent crude price forecast by 2% to $76.06 per barrel in 2025.
