Brent – the oil price is “exposed to further price spikes in 2024” | Forexlive

Summary comments from ANZ on oil, saying that conditions are in place for even higher prices into year end and 2024.

On the supply side:

Production cuts, led by Saudi Arabia, stabilised the market in July but are now likely to push the market into a 2mb/d deficit in Q4.

On demand growth rising:

China’s demand has remained resilient, with domestic oil refiners ramping up processing to a record level last month. This has been aided by strong summer demand for fuels … as economic activity picks up.
India and the US have been surprising sources of strength.
Global oil demand is on track to grow at 2.1mb/d in 2023, an estimate backed up by OPEC and IEA. Both energy groups warned that the oil market would shift into a significant deficit through the year-end.

ANZ conclude: