Oil Prices Close 2024 Lower for Second Year as Market Faces Weak Demand and Oversupply

Global oil markets grapple with declining Chinese demand, rising non-OPEC production, and OPEC+ output strategies as prices stabilize near $70 per barrel.

Brent crude and Texas Intermediate (WTI) ended 2024 down approximately 3% and 0.5% respectively, marking the second consecutive year of annual losses for oil prices.
Weak demand from China, the world's largest oil importer, and increased non-OPEC supply have contributed to a projected oil surplus heading into 2025.
OPEC+ has delayed planned output increases until April 2025 as efforts to stabilize prices face challenges from market oversupply and sluggish demand growth.
China's manufacturing sector showed modest expansion in December, supported by government stimulus, but broader economic concerns continue to weigh on oil demand projections.
Analysts predict oil prices will remain constrained near $70 per barrel in 2025, with potential short-term price fluctuations influenced by geopolitical tensions and U.S. economic policy shifts under the incoming Trump administration.