Barclays Bank lowered its forecast for the price of Brent crude oil to 85 dollars per barrel in 2024
Brent crude prices are expected to fall this year by USD 8 to USD 85 per barrel and they noted that the oil looks undervalued
The main reasons for this to happen are :-
Inventories are still higher than expected and there remains the possibility that OPEC will take longer than expected to normalize excess production capacity.
Large stock withdrawals did not materialize in the fourth quarter of 2023, as demand slowed down and supply came stronger than expected.
There was no material impact on the offer despite the escalation of geopolitical tensions in the Middle East،
Supply disruptions are heading to the lowest level in years.
Angola will withdraw from OPEC starting from the first of January after a disagreement with the producer group over the size of its production quota, with the signing of an agreement between it and China,
the world's largest oil importer, on strengthening cooperation. It is worth noting that Barclays Bank has moved its forecast for the first interest rate cut by the Fed from June to next March.
