Oil Prices to Remain Steady in 2024 Before Potentially Falling in 2025 Due to Oversupply and Lower Demand
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Oil prices are expected to remain largely flat in 2024, averaging around $83 per barrel for Brent crude.
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JPMorgan expects oil demand to increase in 2024 but supply growth to come from non-OPEC producers like the US.
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OPEC+ production cuts have supported prices in 2022-2023 but may unwind by 2025, causing prices to fall to $60s.
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Lower oil prices could slow US drilling/fracking activity, boosting prices modestly to $65 average in 2025.
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Demand growth is expected to slow after 2024 as energy efficiency and EVs gain ground, shifting market into surplus.