The U.S. Energy Information Administration (EIA) anticipates that average annual crude oil prices in 2024 and 2025 will closely align with the 2023 average, reflecting a balanced global supply and demand for petroleum liquids. Projections indicate an average Brent crude oil price of $82 per barrel in 2024 and $79 per barrel in 2025. The forecast attributes the stability in prices to OPEC+ production cuts, with a slight increase expected in the first quarter of 2024 due to global stock draws. Despite minor stock builds after April 2024, global production surpassing consumption is projected to keep prices relatively steady. Reduced OPEC+ production, additional voluntary cuts, and a growth in non-OPEC+ production, particularly from the U.S., are key factors influencing the forecast. Global petroleum consumption is expected to rise, albeit slightly less than the pre-pandemic 10-year average, driven by economic growth and a return to pre-pandemic travel patterns.

SOURCE:HELLENIC SHIPPING NEWS