Posted 1/8/2024, 7:06:47 PM
Falling Oil Prices Driven by Weak Demand and Saudi Push for Market Share
- Oil prices are falling due to uncertain demand, competitive supply, especially for light crudes
- Saudi Arabia cut official selling prices for its crude exports to defend market share, especially in Asia
- The price cuts signal Saudi unwillingness to make further unilateral output cuts to support prices
- With weak demand and rising non-OPEC supply, the oil market outlook is bearish in the first half of 2024
- Absent further geopolitical issues or a sharp drop in U.S. output, expect $70-75 per barrel oil prices near-term