Oil prices stabilize amid global demand outlook, geopolitical uncertainty
Date
3/13/2024 3:55:26 AM
(MENAFN) Oil prices experienced a period of stabilization on Tuesday, following an announcement from the Organization of the petroleum Exporting Countries (OPEC) maintaining its projections for global crude demand growth throughout this year and the next. This decision comes against the backdrop of persistent tensions in the Middle East and beyond, factors that have contributed to a sense of uncertainty in global energy markets.
In terms of price movements, brent crude futures for May delivery saw a modest increase of 24 cents, reaching USD82.45 a barrel by 14:20 GMT. Similarly, the US crude contract for April recorded a rise of 31 cents, settling at USD78.24 a barrel. OPEC's decision to maintain its expectations for robust growth in global oil demand in both 2024 and 2025 reflects a cautious optimism amidst ongoing geopolitical challenges. Additionally, the organization revised its projections for economic growth for the current year, citing potential for further improvements.
Analysts from ANZ offered insights into the current market sentiment, noting that crude oil prices are navigating within a narrow range as traders await demand estimates from the monthly reports of major oil agencies. They anticipate that while these estimates are likely to remain largely unchanged, any unexpected upward revisions could alleviate concerns surrounding demand dynamics. ANZ analysts emphasized the significance of data from organizations such as OPEC, the International Energy Agency, and the Energy Information Administration in shaping market sentiment and price movements.
Meanwhile, geopolitical tensions continue to loom large, with hopes for a ceasefire in Gaza waning amidst ongoing exchanges of fire between Israel and Hezbollah. The persistent threat of conflict escalation underscores the delicate balance within the region and its potential implications for global energy markets.
In summary, OPEC's reaffirmation of its demand growth projections, coupled with ongoing geopolitical uncertainties, sets the stage for a nuanced and cautious outlook in the oil markets. As market participants closely monitor developments both within and beyond the energy sector, the delicate interplay between supply, demand, and geopolitical factors will continue to shape oil price dynamics in the near term.
MENAFN13032024000045015682ID1107970232
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.