Juwai IQI Global Chief Economist, Shan Saeed -Analysts predict oil prices will range between $91 and $147 per barrel in 2024
By TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
KUALA LUMPUR, April 2 – The global oil market stands on the precipice of a significant price surge, with geopolitical tensions and a spike in demand setting the stage for a potential leap to US$100 per barrel, according to Shan Saeed, Global Chief Economist at Juwai IQI.
Juwai IQI is the international real estate technology group that powers property transactions and ownership locally and globally.
It transacted more than 42,000 properties in 2023, advertises US$4 trillion of property from 111 countries and generates 10 million monthly consumer engagements.
As the ASEAN region, Gulf Cooperation Council (GCC) countries, and African nations experience economic growth, the demand for oil intensifies, putting pressure on production to keep pace.
“We’re witnessing a scenario reminiscent of the 2008 price surge. The $100 per barrel mark is not just a possibility; it’s a near certainty, with major players like Russia, Saudi Arabia, and the USA at the forefront of this shift,” Shan told TNS News.
The year 2024 has been marked by volatility in the oil market, with a clear upward trend in prices.
“Backwardation remains a persistent phenomenon, with spot prices outstripping future prices, signaling strong immediate demand. Year-to-date, Brent crude has climbed by 10.31%, while WTI crude has registered a 12.94% increase,” Shan elaborated.
He further explained that the oil market’s trajectory hinges on a complex mix of geopolitical and geo-economic factors.
“Based on my previous projections during a global media interview in Dubai, I anticipate production cuts to continue until at least June 2024, a view that IQI Global still upholds.”
At present, WTI futures are trading at $82.94 per barrel, and Brent futures at approximately $87.21/bbl, marking a 1.77% increase in the last 24 hours alone.
2024 Oil Price Forecast:
According to Shan, analysts predict oil prices will range between $91 and $147 per barrel, based on several critical factors:
- Supply Constraints: Production caps, largely influenced by OPEC’s strategic decisions and geopolitical developments, are expected to persist.
- Dollar Depreciation: A weaker US dollar could make oil, a dollar-denominated commodity, more accessible to other currency holders, potentially driving up demand.
- Geopolitical Risks: Escalating tensions in vital oil-producing areas may disrupt supply chains and push prices higher.
- Robust Demand: Despite possible economic challenges, the energy requirements of emerging economies in ASEAN, GCC, and Africa are likely to maintain a strong demand for oil.
- TNS News