Reserve

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">Oil prices have continued <a aria-label="trending downward (opens in a new tab)" href="https://www.reuters.com/business/energy/oil-steady-ahead-interest-rate-decisions-opec-supply-cut-doubts-2023-12-12/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">trending downward</a> on Tuesday to the lowest level in six months. The decline was prompted by the latest surge in consumer prices and broader market outlook concerns stemming from <a href="https://tokenist.com/oil-prices-drop-as-increased-us-supply-offsets-opec-cuts/" rel="dofollow" class="deco-link">swelling supply levels</a>.&nbsp;</p> 
<h3 id="oil-prices-hit-6-month-low">Oil Prices Hit 6-Month Low&nbsp;</h3> 
<p>Oil prices extended their recent declines on Tuesday, plunging to six-month lows amid growing concerns about oversupply and an unexpected surge in inflation data for November.</p> 
<p>Brent crude futures for February fell to $73.24 per barrel on the day, down 3.7%, while the West Texas Intermediate (WTI) January futures slid 3.8% to $68.61 a barrel.&nbsp;&nbsp;</p> 
<p>As we advance, analysts predict a gloomy outlook for the oil market, citing “higher for longer” rates that will continue to restrict economic growth. OPEC and the International Energy Agency (IEA) updated their forecast this week, predicting slower oil demand growth in 2024, although the two organizations had mixed views.&nbsp;</p> 
<blockquote class="wp-block-quote"> 
 <p>“Negative sentiment towards the oil complex is still overpowering at the moment.” </p> <cite>– said Kpler analyst Matt Smith.</cite>
</blockquote> 
<p>The IEA reduced its 2024 price forecast for Brent crude by $10 per barrel. In line with this updated outlook, Brent would average $83 a barrel next year, compared to $93 per barrel forecasted in the previous monthly report.&nbsp;</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="why-are-oil-prices-declining">Why are Oil Prices Declining?</h3> 
<p>The primary catalyst <a aria-label="driving oil prices lower (opens in a new tab)" href="https://kalkinemedia.com/au/stocks/oil-gas/understanding-the-abrupt-decline-in-oil-prices" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">driving oil prices lower</a> recently is the strengthening supply side compared to demand. Even though global oil demand is sitting at all-time highs and may increase further next year, the increase in crude supplies is weighing on prices.&nbsp;</p> 
<p>The US is already pumping record oil levels into the market, and that trend is projected to extend into 2024. Meanwhile, <a href="https://tokenist.com/oil-prices-gain-as-russia-and-saudi-arabia-continue-supply-cut-other-factors/" rel="dofollow" class="deco-link">OPEC+ has </a>recently extended and deepened its production cuts, but the move failed to prevent oil price losses.&nbsp;</p> 
<p>On top of all that, the latest batch of data showed that US consumer prices <a aria-label="saw an unexpected rise (opens in a new tab)" href="https://www.reuters.com/markets/us/us-consumer-prices-unexpectedly-rise-november-2023-12-12/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">saw an unexpected rise</a> in November, led by significantly high rent costs. The data provided further evidence that the Federal Reserve is unlikely to begin cutting interest rates in early 2024, despite <a href="https://tokenist.com/three-stocks-that-can-rise-if-the-fed-starts-cutting-rates-in-2024/" rel="dofollow" class="deco-link">broader expectations</a>, leading to a tighter outlook for crude oil in the near term.&nbsp;</p> 
<p>The COP28 climate summit <a aria-label="heading into overtime (opens in a new tab)" href="https://www.reuters.com/sustainability/climate-energy/cop28-heads-overtime-draft-fossil-fuel-deal-divides-nations-2023-12-12/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">headed into overtime</a> on Tuesday as negotiators awaited a new draft deal after numerous member countries described the previous version as too soft, saying it disregarded a “phase-out” of fossil fuels. This push could negatively affect oil demand growth as countries intensify efforts to embrace renewable energy.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe> 
<p><em><strong>Can a rebound in oil demand be expected in 2024 despite current predictions? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/oil-prices-continue-to-fall-with-outlook-not-looking-good/">Oil Prices Continue to Fall, with Outlook Not Looking Good</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Oil Prices Continue to Fall, with Outlook Not Looking Good

Table of Contents

Tokenist

Other articles published on Dec 13, 2023

Fed Signals Pause in Rate Hikes, Forecasts Reduced Borrowing Costs for 2024

FTX Battles IRS Over $24 Billion Tax Claim, Threatening Recovery for Victims

Peter George, Fintech Entrepreneurial Leader for Digital Currencies, Blockchain Applications, Nam...

Snapchat+ Introduces AI-Powered Image Enhancement and Generation Features

CoinMENA FZE secures VASP License for VA broker-dealer services in Dubai

Digital Currency Tied to Chinese Man in Crypto Fraud Seized by US

Join our free newsletter for daily crypto updates!