Markets

OPEC and industry leaders see oil and gas playing a vital role in the energy transition.

The outlook for the crude market in the second half of 2024 presents a nuanced landscape shaped by global economic factors and geopolitical dynamics.

In recent updates from industry leaders and analysts, the oil market has seen varied sentiments and forecasts.

While recent optimistic inflation data has slightly buoyed oil prices, with the US Federal Reserve indicating one rate cut before the end of this year and additional cuts in 2025 and 2026, a mix of global events is likely to sway crude prices in the coming weeks.

Rosneft CEO Igor Sechin recently highlighted how the increased spare production capacity in Western and Middle Eastern companies is neutralizing the efforts of OPEC+ to stabilize oil prices.

Following OPEC+'s announcement signaling a shift in strategy towards increasing production from Q4 2024, oil futures prices dipped to their lowest in four months.

OPEC remains confident about substantial growth in global oil demand for 2024 and 2025, despite economic uncertainties and high interest rates potentially affecting consumption.

OPEC Optimism vs. IEA Concerns: Diverging Oil Demand and Supply Forecasts for 2024.

Recent analyses by Macquarie and Standard Chartered Bank highlight cautious outlooks for the oil market amidst geopolitical tensions and economic factors.