Overview

• Oil prices remain subdued despite geopolitical tensions, with West Texas Intermediate crude trading around $77-$78 a barrel.
• Global oil demand growth is slowing, with the IEA forecasting a rise of 1.2 million barrels per day in 2024, down from 2.3 million bpd in 2023.
• Supply dynamics are robust, with non-OPEC production, particularly from the US, Brazil, Guyana, and Canada, expected to grow significantly.
• Geopolitical risks, including tensions in the Middle East and potential escalations, continue to influence market sentiment but have not led to significant price spikes.
• Economic factors such as high interest rates and slowing global economies, including recessions in Japan and the UK, are putting downward pressure on oil demand.