He Petroleum is on track to close the year with a 10% drop in its price after two consecutive years of increases, after geopolitical concerns, production cuts and central bank measures to curb the inflation caused strong fluctuations in their reference values.
This Friday, the price of Petroleum advanced after falling 3% the previous day, as more shipping companies prepared to transit the Red Sea. The main companies had stopped using these routes in Middle East after the Houthi rebel group in Yemen began to attack the ships.
The futures of Brent crude oil were up 58 cents, or 0.8%, at $77.73 a barrel at 11:13 GMT, the last trading day of 2023, while U.S. West Texas Intermediate (WTI) crude oil U.S. stocks gained 42 cents, or 0.6%, to $72.19, Reuters reported.
However, the two benchmark contracts are on track to hit their lowest year-end levels since 2020, when the pandemic hit demand and sent prices plummeting.
Production cuts by the Organization of the Petroleum Exporting Countries and its allies led by Russiathe OPEC+have proven insufficient to support prices, which have fallen almost 20% from the year’s highs.
Currently, OPEC+ is cutting its production by about 6 million barrels per day, which represents around 6% of global supply.
OPEC faces weakening demand for its crude in the first half of 2024, just as its global market share falls to its lowest level since the COVID-19 pandemic due to production cuts and exit from the EU. Angolan organization.
A Reuters poll of 34 economists and analysts forecast Brent crude would average $82.56 in 2024, below the November consensus of $84.43, as they predicted the weak global growth would limit demand, while geopolitical tensions could provide support.
The weak behavior of Petroleum at the end of the year contrasts with global equities, which are on track to end 2023 on the rise.
Source: Ambito
