The oil market is doing well. Oil has once again found stability as prices remain balanced. However, according to the International Monetary Fund (IMF), energy prices are expected to drop by 4.6% this year.
The IMF report also states that the price of oil will not exceed $81.26 per barrel in 2024 and will be around $76.38 per barrel in 2025. Additionally, IMF experts calculated the average prices of Brent, Dubai, and WTI. They predict that in 2024, energy prices will decrease by 4.6%, which is less than anticipated in April this year. This adjustment is attributed to significant production cuts by OPEC countries.
Previously, the International Energy Agency (IEA) indicated that global oil demand would increase by less than 1 million barrels per day in 2024 and 2025. This is due to reduced consumption in China. Last month, global oil reserves decreased by 18.1 million barrels.
OPEC+’s dissatisfaction with the production level agreements is adding to the complexity. The organization points out that some countries are not meeting their commitments to cut production. Occasionally, these countries promise to compensate for overproduction but fail to do so. Reports suggest that Iraq and Kazakhstan are following this strategy, as they have not reduced their production despite long-standing commitments to do so.
