Leading rating agency, Fitch Solutions, has adjusted its crude oil forecast for 2024 to $80.0 per barrel, marking an increase from the earlier projection of $75. This revision is expected to have significant implications for the global energy landscape, reflecting changing market dynamics and economic considerations.
However, the rating agency is anticipating a reduced crude oil price for 2025, with a projection of $70 per barrel, aligning with its initial forecast of $70. This outlook suggests a cautious perspective on the trajectory of oil prices in the coming year.
Currently, the world market sees crude oil priced at $76 per barrel.
Hence, assuming the forecasted price holds and considering the stability of the cedi, fuel prices at the pumps are not expected to undergo significant changes in 2024.
The elevated Brent and WTI oil benchmark projections for 2024, as stated, find support in OPEC’s ongoing efforts to bolster oil prices. This includes the recent collaborative decision of several members to join Saudi Arabia and Russia in implementing additional cuts during the first quarter of 2024.
According to the UK-based firm, the market was likely to be in a deficit of about 1.2 million barrels per day in the second half of 2023, according to the International Energy Agency.
It explained that OPEC+’s additional curtailments suggest that the deficit could persist in the first half of 2024, provided that compliance with production cuts remain strong.