Oil price futures lost more than ten percent on the last trading day of 2023, which witnessed geopolitical turmoil and concerns about oil production levels among major producers around the world.
Brent crude futures fell 11 cents, or 0.14 percent, to settle at $77.04, while US West Texas Intermediate crude futures fell 12 cents, or 0.17 percent, to settle at $71.65.
Both contracts fell by more than ten percent in 2023, ending the year at their lowest levels since 2020, when the Corona pandemic undermined demand and led to lower prices.
Brent crude rose by ten percent and West Texas Intermediate crude rose by seven percent last year, supported by concerns about supplies after the Russian invasion of Ukraine.
A Reuters survey of the opinions of 34 economists and analysts expects the average price of Brent crude to reach $82.56 per barrel in 2024, down from the November average of 84.43, as they expect a decline in global growth to limit demand. Ongoing geopolitical tensions may support prices.
Analysts also questioned the ability of the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) to adhere to the supply cuts they pledged to support prices.
OPEC+ is currently reducing production by about six million barrels per day, which represents six percent of global supplies.
OPEC faces weak demand for its crude in the first half of next year, with its share in the global market falling to the lowest level since the pandemic due to production cuts and Angola’s exit from the group.
Meanwhile, the war in the Middle East has raised concerns about possible supply disruptions in the past few months that are expected to continue into 2024.
2023-12-29 23:00:14
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