Oil investors to usher in 2024 amid oversupply, demand concerns

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Oil investors will usher in 2024 with gnawing concerns about oversupply, slowing economic growth and simmering Middle East tension that could spark price volatility.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Published by

14 Dec 2023

Benchmark Brent averaged around $80 a barrel this year, after a volatile 2022 in which prices surged above $100 after Russian supplies were disrupted following the Ukraine war.

Prices have been capped this year by a strong dollar and robust non-OPEC output despite demand hitting all-time high of more than 100 million barrels per day (bpd).

A Reuters survey of 30 economists and analysts forecasts Brent crude to average $84.43 a barrel in 2024.

Those expectations come despite wide-ranging demand growth forecasts ranging from 1 million bpd by the International Energy Agency to 2.25 million bpd expected by the Organization of the Petroleum Exporting Countries (OPEC). [O/POLL]

Supply in 2024 is expected to grow between 1.2 million and 1.9 million bpd, driven by non-OPEC producers, say consultancies Rystad Energy, J.P. Morgan, Kpler and Wood Mackenzie.

«We're looking for an oversupplied