{"id":9291,"date":"2023-12-29T11:52:17","date_gmt":"2023-12-29T11:52:17","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=9291"},"modified":"2023-12-29T11:52:17","modified_gmt":"2023-12-29T11:52:17","slug":"oil-prices-set-to-end-year-10-lower-as-demand-concerns-snap-winning-streak","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/9291\/","title":{"rendered":"Oil prices set to end year 10% lower as demand concerns snap winning streak"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil prices are set to end 2023 about 10% lower after two years of gains as geopolitical concerns, production cuts and central bank measures to rein in inflation triggered wild fluctuations in prices.<\/p>\n

On Friday, oil climbed after falling 3% the previous day as more shipping firms prepared to transit the Red Sea route. Major firms had stopped using Red Sea routes after Yemen’s Houthi militant group began targeting vessels.<\/p>\n

Brent crude futures were up 58 cents, or 0.8%, at $77.73 a barrel at 1113 GMT, the last trading day of 2023, while U.S. West Texas Intermediate (WTI) crude futures were up 42 cents, or 0.6%, at $72.19.<\/p>\n

Yet the two benchmarks are on track for their lowest year-end levels since 2020, when the pandemic battered demand and sent prices nosediving.<\/p>\n

Production cuts by the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+, have proved insufficient to prop up prices, with the benchmarks down nearly 20% from the year’s highs.<\/p>\n

OPEC+ is currently cutting output by around 6 million barrels per day representing about 6% of global supply.<\/p>\n

OPEC is facing weakening demand for its crude in the first half of 2024 just as its global market share declines to the lowest since the COVID-19 pandemic on output cuts and member Angola’s exit.<\/p>\n

A Reuters survey of 34 economists and analysts forecast Brent crude would average $82.56 in 2024, down from November’s $84.43 consensus, as they predicted weak global growth would cap demand, while geopolitical tensions could provide support.<\/p>\n

Oil’s weak year-end performance contrasts with global equities, which are on track to end 2023 higher.<\/p>\n

The MSCI equity index, which tracks shares in 47 countries, is up about 20% as investors ramp up bets on rapid-fire rate cuts from the U.S. Federal Reserve next year.<\/p>\n

In the currency market, the dollar was on the back foot and headed for a 2% decline this year after two years of strong gains.<\/p>\n

Updated on