According to a recent study by the financial group Citigroup, it is expected that the price of a barrel of Brent oil, a major benchmark for the global oil industry, will fall to around $70 by 2024. This drop would be due to a surplus of the offer on the market.
According to projections, this drop could occur during the fourth quarter of 2023 or the first three months of the following year. The fundamentals and balance of the oil market are not expected to change much, but there is nevertheless a risk of a significant correction.
It is worth recalling that oil prices have seen a dramatic rise in recent months, recording a cumulative increase of more than 30% in the last three months. However, despite this progress, the oil market remains subject to numerous fluctuations.
These forecasts also concern Africa, where the supply of liquids has increased significantly in recent years. Indeed, according to the “State of African Energy Q1 2023” report, oil production in Africa reached nearly 7 million barrels per day, or more than 430,000 barrels per day more than in 2020.
This change in oil supply in Africa could have repercussions on the region’s economy. It is therefore essential to take this data into account in order to better understand the issues linked to the oil market and the global economy.
In conclusion, with Citigroup’s forecasts of a possible drop in the price of a barrel of Brent oil to around $70 by 2024, it is essential to closely monitor developments in the oil market and its implications for the global economy. Fluctuations in this market can have significant consequences, both locally and globally, particularly on oil-producing countries and the industries that depend on them. It is therefore crucial to stay informed and understand current market trends.