January 19, 2024

Global Commodities: What is a balanced market worth?

7 minutes

As we put a bow on 2023, our view remains that oil demand growth will slow from a very strong 1.8 mbd in 2023 to a still strong 1.5 mbd in 2024, underpinned by a moderating but still resilient global economic expansion and remaining pent-up oil demand. On the supply side, producers outside of the OPEC+ alliance again should drive overall growth in supply—projected at 1.6 mbd—matching growth in demand. All of this means a largely balanced market, with Brent prices averaging $83 for the year. The biggest pushback against our view has not been the balanced supply-demand outlook, but whether a balanced market is indeed worth $80.

Speaker:

Natasha Kaneva, Head of Global Commodities Research

This podcast was recorded on January 19, 2024.

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