According to a survey of analysts compiled by The Wall Street Journal, oil prices are expected to increase next year after reaching their lowest levels in nearly six months earlier in December.
Projections for Brent Crude and WTI
In the first quarter of 2024, the forecasted average for Brent crude is $84.30 a barrel. While this is around $4 higher than the current levels, it is lower than previous analyst expectations of $89.34 a barrel. On the other hand, the international oil benchmark is anticipated to reach an average of $87.49 a barrel in the fourth quarter.
For WTI, the main U.S. gauge, the projected average in the first quarter is $80.76 a barrel, which is lower than the previous expectations of $85.69. However, it is expected to rise to $82.76 a barrel in the fourth quarter.
Recent Market Trends
After experiencing weeks of declines, oil prices have started to rebound. This is primarily due to concerns over global trade disruptions caused by recent attacks from Yemen’s Houthi forces, leading major shipping and oil companies to pause transit through the Red Sea. As of now, Brent trades at $80.53 a barrel, while WTI stands at $75.31 a barrel.
Factors Behind the Price Rebound
The recent market optimism surrounding interest-rate cuts expected next year has contributed to the price recovery. Previously, concerns regarding subdued demand and market oversupply had weakened oil prices, despite the supply cuts implemented by OPEC+.
As we head into 2024, analysts foresee oil prices gradually rising, with potential geopolitical and economic developments shaping the future of this crucial commodity market.
