Fitch revised its short-term outlook for oil prices, attributing this to OPEC's control over supply and ongoing dynamics in the energy market.
According to new estimates, the price of Brent crude will reach $80 in 2024, compared to previous estimates of $75.
The agency also raised its estimate for the price of US crude by about $5 at $75 per barrel.
The agency raised its price expectations for both Brent crude and US crude, based on estimates by the International Energy Agency that the deficit in the crude market reached 1.2 million barrels per day in the second half of 2023.
It added: “Raising price expectations for Brent and US crude in 2024 was supported by OPEC+’s continued attempts to support prices.”
The OPEC+ group agreed at the end of last month to voluntary cuts in oil production by about 2.2 million barrels per day in the first quarter of 2024.
In addition, the Agency raised its expectations for the price of a barrel of WTI oil for 2023/24 from $75 to $78 and from $70 to $75, respectively.
According to Fitch, the price of WTI is estimated at $65 in 2025, and $60 in 2026.
Fitch
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