Despite these challenges, persistent geopolitical risks and ongoing production cuts by OPEC+ are expected to support oil prices in the coming months. Brent crude is projected to average $78 per barrel in the first quarter of 2025.
Last Friday, oil prices closed
2.5% lower, marking a weekly decline amid broader concerns about weakening
global demand. As of 06:36 GMT (09:36 Mecca time), Brent crude futures for
January 2025 delivery rose 0.10% to $71.11 per barrel. Simultaneously, West
Texas Intermediate (WTI) crude futures for December 2024 delivery declined
0.06% to $66.98 per barrel
A gloomy outlook for oil prices
has emerged, with both benchmark crude grades ending the previous week lower
and the EIA slashing its 2025 price forecasts. Brent crude fell 3.8% and WTI
crude fell 4.77%.
The U.S. Energy Information Administration (EIA) lowered its oil price forecast for 2025, citing expectations of a $71.60 per barrel average spot price for WTI in 2025. This represents a 2.1% decrease from October 2024 estimates. The EIA also reduced its Brent crude price forecast by 2% to $76.06 per barrel in 2025.