Oil Price to Remain Under Pressure in 2025
Oil Prices to Remain Under Pressure in 2025, Expert Predicts
Economist Warns of Continued Oversupply and Geopolitical Uncertainty
Oil prices are facing continued pressure, and this trend is expected to persist into 2025, according to energy economist Hans van Cleef.
Van Cleef,speaking with ABM Financial News,attributes the downward pressure primarily to weakening global demand. “The world economy is struggling, and growth in China is falling short of expectations,” he explains.”The limited growth we are seeing isn’t translating into increased oil demand.”
This sluggish demand, coupled with ample supply, is creating a prolonged period of oversupply, Van Cleef predicts.
Looking ahead to 2025,two key factors will be crucial in determining the trajectory of oil prices.
First, the actions of OPEC+, notably Saudi Arabia, will be closely watched. Van Cleef notes that Saudi Arabia’s market share is under pressure, and the kingdom may eventually decide to ramp up production to squeeze out competitors.
Second, the policies of the Trump management remain a wildcard. “What will Trump do?” Van Cleef asks, highlighting the uncertainty surrounding U.S. energy policy.
Taking all these factors into account, Van Cleef anticipates that oil prices will remain under pressure in 2025.
This analysis follows Van Cleef’s recent commentary on the contrasting trend in natural gas prices, which are currently on the rise, alongside record-high electricity prices.
Oil Prices Brace for Headwinds in 2025, economist Warns
New York, NY – Oil markets face an uphill battle in 2025, with prices likely to remain under pressure due to a confluence of factors, according to energy economist Hans van cleef.
Speaking to ABM Financial News, van Cleef pointed to weakening global demand as the primary culprit. “The world economy is struggling, and growth in China is falling short of expectations,” he stated. “Limited growth isn’t translating into increased oil demand.”
This sluggish demand, combined with ample supply, paints a picture of persistent oversupply, van Cleef predicts.
two key factors will be crucial in shaping oil prices in 2025, according to van Cleef. firstly,the actions of OPEC+,especially Saudi Arabia,will be closely monitored. With Saudi Arabia’s market share under pressure, the kingdom may opt to increase production to compete with rivals.
Secondly, van Cleef highlighted the uncertainty surrounding U.S.energy policy under the Trump administration. “What will Trump do?” he questioned,emphasizing the wildcard nature of American policy decisions.
Taking all these elements into consideration,van Cleef anticipates sustained downward pressure on oil prices throughout 2025.
This analysis follows van Cleef’s recent observations on the diverging trend in natural gas prices, which are currently rising alongside record-high electricity prices.