Oil​ Prices Predicted to ⁤Fall in ⁢2025‌ Due to Excess Supply

Analysts ⁢at Citi Research forecast a decline in oil ‍prices next​ year, citing an excess⁤ supply in the⁣ market. The average price of Brent is expected to be $60 ‌per barrel in⁢ 2025.

The oil market is anticipated to face an excess supply ‍of approximately 1 million barrels per day (b/d) in 2025,⁤ even if OPEC+‌ maintains its current production restrictions. This surplus is ⁣likely to‌ put downward pressure on⁢ oil prices.

OPEC+‌ Production Strategy

OPEC+ is‌ expected to focus on meeting existing quotas,⁢ avoiding‌ difficult ​decisions about changing course, such as increasing or cutting production further. This approach⁤ is⁤ likely to contribute‌ to the excess supply in the market.

Earlier this⁤ month, OPEC+ delayed the ‍partial lifting of production restrictions planned⁤ for October until December. This move ‍is seen as an attempt to manage the supply glut and⁢ stabilize​ oil prices.

Oil Demand and Non-OPEC Production

Growth in oil‍ demand next‌ year⁤ is forecast‌ to be less than⁤ 900,000 barrels a day, which ​is ⁢expected to be ‍easily covered by an increase in production⁤ from⁣ non-OPEC countries. If OPEC+ lifts production restrictions, it will lead to more excess oil‍ in the market.

Short-Term Price Outlook

Citi analysts predict that Brent will trade⁣ above $70 ⁤per barrel in the near future ⁤due to the loss ‍of oil supplies from⁣ Libya ⁢and ⁢Russia’s stricter compliance with OPEC+ quotas.

Additionally, ⁤oil demand in⁤ China is expected to increase‍ by 300 ⁤thousand barrels ‍per day in the ⁢fourth quarter, compared to‌ the same period last year. This growth‍ is attributed to a decline​ in oil demand in the previous two quarters.

Current Market Prices

As ⁣of 17:30, the November futures cost⁤ for ⁢Brent on the London ICE ⁢Futures exchange was $73.21 per barrel, while the cost of contracts ‍for WTI oil for ‍October on the New York Mercantile Exchange ⁢(NYMEX) was $70.39 per barrel.