2024-08-12 20:24:00
It will be difficult for OPEC+ countries to maintain high oil prices for a long time. This is how Bloomberg experts assessed the cartel’s capabilities, Day.Az reports with reference to Lenta.ru.
According to the publication’s columnist Javier Blas, OPEC+ will be able to keep prices above $75 per barrel for several weeks or perhaps two to three months. In 2025, this task will become more difficult, and the cost of raw materials may fall.
Global oil demand continues to rise, with China’s decline offset by “runaway” American demand, which rose to a record 20.8 million barrels a day in May. Even in Europe, oil demand is holding up well as electric vehicle sales plummet, Blas added.
“All told, the world will consume at least a million barrels a day more this year than it did in 2023, in line with the annual average over the past couple of decades. Despite the warnings of naysayers, global oil demand is not falling off a cliff; growth has simply slowed,” he said.
With non-OPEC production rising, demand falling seasonally and large volumes of oil planned for delivery this fall, the market will be oversupplied, causing prices to fall.
“The first half of 2025 looks tough for OPEC+, even if oil demand growth remains stable. If it does not agree to lower prices, it will not be able to increase production at all. And it may have to cut it even further. The $75 red line may hold for a while, but not for long,” the analyst added.
Subscribe to our WhatsApp channel and stay up to date with the latest news!