CEM REPORT, ENERGY | Brent Crude opened the week with $81.91 per barrel amidst concerns that Middle East tensions could interfere with supply which made the market retained a level of bullishness.
Amidst market whispers that OPEC+’s 2024 production cuts seem to be ignored by the oil group members, Brent continued to hover around $82 per barrel. As the time of filling this report, Brent Crude (March Contract) sold at 83.48 having gained 1.92% while WTI was accessed at $79.02 having risen from 76.55 gaining 3.2%. Bonny Light (Nigerian crude) sold at 86.52 on Friday.
Within the week, OPEC released their monthly oil market report retaining last month’s assessment of the global oil demand growth forecast for 2024 at 2.2 mb/d. The report reviewed downward global oil supply. Non-OPEC liquids production in 2024 is expected to grow by 1.2 mb/d, to be driven mainly by US, Canada, Guyana, Brazil and Norway.
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According to the report, demand for OPEC crude in 2024 stands at about 28.4 mb/d, which is 1.0 mb/d higher than the estimated level for 2023. Demand for OPEC crude in 2025 is expected to reach about 28.8 mb/d, an increase of about 0.5 mb/d over the forecast 2024 level.
