OIL: Hovering in high volatility

Crude oil prices in 2024 remained volatile, influenced by geopolitical tensions, global economic recovery, and supply-demand dynamics. OPEC+ countries, led by Saudi Arabia and Russia, have continued managing production levels to support prices. Rising demand, especially from emerging economies, has helped stabilize prices, although recession fears in developed nations have led to some uncertainty.

As 2025 approaches, experts expect global oil demand to grow steadily, driven by increased transportation and industrial needs, particularly in Asia. However, the shift towards renewable energy and electric vehicles could dampen long-term growth. Crude oil prices are anticipated to hover between $70-$90 per barrel, barring any major geopolitical disruptions or economic shocks.

Environmental concerns and energy transition policies will also play a significant role in shaping the future of oil. During the year Brent crude oil price marginally fell $3.07 or 3.99 per cent to $73.71 per barrel on December 26, 2024, from $76.78/bbl on December 29, 2023. And the 2024 year’s high was $90.22 on April 5 and low was 68.93 on September 10. Brent crude witnessed price volatility in $21.29 or 30.88 per cent range in 2024.