Bank of America estimates point to a drop in the price of a barrel of oil in 2025 to $65 per barrel due to an excess of supply and a decrease in demand, marked by the advance of clean energy.

According to Francisco Blanch, head of global commodities research at BofA, “the supply of crude oil in global markets will be abundant, avoiding price spikes similar to those of 2022 after the Russian invasion of Ukraine.”

This surplus has been contributed to by factors such as record US production (20% of global supply) and increased production in Venezuela and Iran.

Beyond OPEC+ production cuts, the intention to regain market share in the future remains. The bank maintains that oil production will increase significantly in Brazil, Guyana, Canada and Argentina in 2025. “This increase in supply, combined with a slowdown in demand, reinforces downward price projections.”

On the other hand, the decrease in demand from China, the world’s largest importer of crude oil, is marked by internal economic problems, such as the collapse of the real estate sector, and its transition to electric vehicles and cleaner energy.

JPMorgan adds in its report “Global Commodities 2025 Outlook”, the slowdown in demand growth of around 1.1 million barrels per day in 2025; “Brent will average $73 per barrel in 2025 and fall to $61 in 2026.”

M.Pino

Source: criptotendencia

(Reference image source: Documerica on Unsplash)

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