The slowdown in the Chinese economy is one of the factors that is putting a ceiling on prices. The abundant supply from non-OPEC countries also influences.
Oil prices fell for the second year in a row in 2024due to weak demand after the pandemic, the difficulties of China’s economy and because non-OPEC producers kept the market well supplied. For 2025, no large increases in values are expected.
This Tuesday, December 31, the barrel of crude oil Brent rose US$0.65, or 0.9%, to US$74.64. However, fell around 3.2% compared to its closing price in 2023.
For its part, US light oil WTI gained US$0.73, or 1%, in daily terms to end the day in the US$71.72while in the accumulated annual period it remained almost stable.
In September, Brent futures closed below $70 for the first time since December 2021and this year they generally traded below the highs of recent years, as the post-pandemic demand rebound and price shocks from the Russian invasion of Ukraine in 2022 began to fade. The high of 2024 was US$91.17 a barrel, which is the lowest annual maximum since 2021.
Weak Chinese demand and abundant non-OPEC supply put a ceiling on prices
Oil prices likely to remain capped near $70 per barrel in 2025since it is expected that the weak demand from China and the increase in supply overshadow OPEC+’s efforts to shore up the market, a monthly Reuters poll showed on Tuesday.
Weakening Chinese demand forced the Organization of the Petroleum Exporting Countries and the International Energy Agency to cut their oil demand growth forecasts for 2024 and 2025. With non-OPEC supply also increasing, The IEA considers that the oil market will enter a surplus in 2025, despite the fact that OPEC and its allies delayed their plan to start increasing production until April 2025.
U.S. oil production rose by 259,000 barrels a day to a record 13.46 million barrels per day (bpd) in October, while demand soared to the highest since the pandemic, U.S. data showed on Tuesday. the United States Energy Information Administration (EIA). According to the EIA, production will reach another record of 13.52 million bpd next year.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
