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Amid Swings in Supply and Strategy, Oil Prices Reflect a Market in Flux

Amid Swings in Supply and Strategy, Oil Prices Reflect a Market in Flux

Posted on February 28, 2024
Writer: James Miller

Investors and markets face fresh uncertainty as oil prices swing around $78 a barrel, influenced by growing U.S. inventories and the possibility of extended supply reductions by OPEC+.

The recent climb in U.S. crude stockpiles, although less than anticipated, unsettles forecasts and impacts perspectives on global demand and supply balance.

Despite the inventory build, oil is on track for a slight monthly increase, supported by OPEC+ and its allies’ supply reductions, expected to extend into the next quarter. Geopolitical tensions in the Middle East have also contributed to price support.

Yet, concerns over demand persist, particularly with projections from China National Petroleum Corp suggesting a mere 1% growth in China’s crude consumption this year. As the initial surge from the post-pandemic recovery begins to fade, and as the transition towards new energy vehicles takes hold, the impact on demand becomes increasingly evident.

For more information, check out the full article on Bloomberg.

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