Oil prices are heading to end 2023 down by about 10%, recording the first annual decline in two years, after geopolitical concerns, production cuts, and global measures to curb inflation caused sharp price fluctuations.
Brent crude futures rose 0.7% to $7,785 per barrel by 09:25 GMT, and US West Texas Intermediate crude futures increased 0.6% to $72.3 today, Friday, which is the last trading day in 2023.
The rise in prices on Friday came after their decline the previous day as more shipping companies prepared to cross the Red Sea, at a time when major companies suspended the use of this route after the Yemeni Houthi group began targeting ships.
Thus, the two benchmarks are heading to end the year at the lowest general level since 2020, when the Corona (Covid-19) pandemic undermined demand and led to a decline in prices.
The production cuts made by the OPEC Plus alliance were not enough to support prices, with the prices of the two standard crude oils falling approximately 20% from their highest level this year.
In the currency market, the dollar is on track to decline 2% this year after two years of strong gains
Oil’s weak year-end performance contrasts with global stocks, which are on track to end 2023 on the rise.
In the currency market, the dollar has declined and is heading toward a 2% decline this year after two years of strong gains.
Sector officials say that an expected cut in interest rates – which may reduce borrowing costs in key consumption areas – and a weak dollar – which makes oil less expensive for foreign buyers – may boost demand in 2024.
A Reuters survey of the opinions of 30 economists and analysts expects the average price of Brent crude to reach $84.43 per barrel in 2024, compared to an average of about $80 per barrel this year and high levels of more than $100 in 2022 after the Russian-Ukrainian war.
