Persistently high oil prices are expected to prevail until 2024, primarily driven by production cutbacks led by Saudi Arabia. This forecast comes as the U.S. crude oil standard, West Texas Intermediate (WTI), recently hit a 13-month high due to supply constraints.
A recent survey by the Wall Street Journal predicts that both Brent crude and WTI will average near $89.28 and $85.33 per barrel respectively over this period. The increasing prices reflect the ongoing production cutbacks led by Saudi Arabia, which have significantly impacted global supply.
These cutbacks have resulted in escalating prices for WTI, which has attained a 13-month high this week. The demand-supply imbalance caused by these production reductions has led to a surge in oil prices, affecting markets globally.
The Wall Street Journal survey indicates that these elevated oil prices are expected to persist until 2024, hinting at a prolonged period of increased energy costs for consumers and businesses alike. This could potentially impact economic growth and inflation rates worldwide.
As the global economy continues to grapple with these high oil prices, the focus remains on Saudi Arabia's production strategy in the coming months. Any changes in their approach could significantly influence global oil pricing trends and market stability.
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