BAKU, Azerbaijan, June 17. Oil prices have seen significant fluctuations in 2024, influenced notably by escalating tensions in the Middle East, according to recent data from the World Bank, Trend reports.
April witnessed a notable surge in prices, driven by geopolitical risks, although prices have since moderated.
Against this backdrop of continued geopolitical uncertainty, the World Bank forecasts the average price of Brent crude oil to be slightly higher this year compared to last year, averaging around $84 per barrel. Looking ahead to 2025, prices are expected to recede to approximately $79 per barrel. This projection reflects the partial rollback of OPEC+ supply cuts and the anticipated increase in non-OPEC+ production.
The near-term outlook for oil prices remains highly uncertain, particularly due to the potential for sudden spikes caused by conflict-related supply disruptions. Such uncertainties underscore the challenges faced by global markets in maintaining stability amidst geopolitical tensions.
Oil prices have experienced significant volatility in 2024, driven by geopolitical tensions and global demand fluctuations. Prices surged in April due to heightened geopolitical risks in the Middle East but have since stabilized as tensions eased.
OPEC+ countries have been adjusting their supply cuts amidst changing market conditions. OPEC+ is expected to gradually increase production in response to rising global demand, which could impact future oil price trends.
The resurgence of US shale oil production continues to influence global oil markets. The Energy Information Administration (EIA) notes that US shale output has been recovering, contributing to overall supply dynamics and price stability.
The pace of global economic recovery post-pandemic has also influenced oil prices. As economies reopen and industrial activities resume, there has been an uptick in oil demand, supporting price levels despite supply-side uncertainties.
Follow the author on X: @Lyaman_Zeyn