Oil Prices Stay Subdued Amid Geopolitical Tensions

Slowing demand growth and robust supply dynamics keep market pressures in check.

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.