Oil ends 2023 recording the largest annual decline since 2020‎

30 Dec 2023

Riyadh - Maaal

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Oil prices ended the year 2023 recording the largest annual decline since 2020, by about 10%, with concerns related to the increased supply in the market of record production outside OPEC prevailing.

According to CNBC, despite the escalation of geopolitical tensions during the year 2023, oil prices recorded a decline on an annual basis, with American crude ending the year’s trading at $71.65 per barrel, losing more than 10% during the year in the first annual decline. It has been there since 2020. Brent futures also ended the year at $77.04 per barrel.

At the end of the year’s trading, Friday, December 29, US crude futures contracts fell by about 0.17%, losing 12 cents, and reaching $71.65 per barrel upon settlement. Brent futures also fell by about 11 cents, or 0.14%, to reach $77.04 per barrel at settlement, amid weak activity on the last trading day.

اقرأ المزيد

The year 2024 witnessed sharp fluctuations in oil prices, due to the geopolitical tensions that characterized the year, and with developments related to production, both with regard to the decisions of OPEC and its allies, as well as with regard to production outside OPEC.

Regarding estimates for next year, 2024, the president of Lipo Oil Associates, Andrew Lipo, said: We will witness continued fluctuations as we enter the year 2024 with geopolitical events and fear of the possibility of conflict spreading throughout the region.

OPEC+ is currently reducing production by about 6 million barrels per day, which represents about 6% of global supply.

OPEC faces weak demand for its crude in the first half of 2024, with its share in the global market falling to the lowest level since the pandemic due to production cuts and Angola’s exit from the group.

A Reuters survey of the opinions of 34 economists and analysts expected the average price of Brent crude to reach $82.56 in 2024, down from the November average of $84.43, as they expected that weak global growth would limit demand, while geopolitical tensions could provide support.