Oil prices head for ending the year down 10% due to concerns ‎about demand

Oil prices are heading to end 2023 down by about 10%, recording the first annual decline in two years, after geopolitical concerns, production cuts, and global measures to curb inflation caused sharp fluctuations in prices.

According to Reuters, Brent crude futures rose 33 cents, or 0.4%, to $77.48 per barrel by 0756 GMT on Friday, the last trading day in 2023, while US West Texas Intermediate crude futures increased 20 cents, or 0.3%, to 71.97. Dollar…

Oil prices stabilized today, Friday, after falling 3% the previous day, with more shipping companies preparing to cross the Red Sea. Major companies suspended the use of this route after the Yemeni Houthi group began targeting ships

Thus, the two benchmarks are heading to end the year at the lowest end-of-year level since 2020, when the Corona pandemic undermined demand and led to a decline in prices.

The production cuts made by the OPEC+ alliance were not enough to support prices, with the prices of the two standard crude oils falling approximately 20% from their highest level this year.

Oil’s weak performance at the end of the year contrasts with global stocks, which are on track to end 2023 on a high note.

In the currency market, the dollar declined and is heading towards a two percent decline this year after two years of achieving strong gains

Sector officials say that the expected cut in interest rates, which may reduce borrowing costs in key consumption areas, and the weak dollar, which makes oil less expensive for foreign buyers, may boost demand in 2024.