- An attack on a Russian fuel export terminal contributed to a drop in crude oil prices.
- In 2024 and 2025, consumption is expected to increase by 1.4 million barrels per day and 1.2 million barrels per day.
- Supply has not been impacted by the ongoing fighting in West Asia or the Red Sea situation.
Geopolitical tensions in West Asia, ongoing demand worries, and an attack on a Russian fuel export terminal all contributed to a drop in crude oil prices globally on Monday.
Global demand for liquid fuels is expected to decline over the next two years, according to US Energy Information Administration (EIA) projections. In 2024 and 2025, consumption is expected to increase by 1.4 million barrels per day and 1.2 million barrels per day, respectively, compared to 1.9 million barrels per day growth in 2023.
Crude oil
According to the International Energy Agency (IEA), the growth in the world’s oil demand in the fourth quarter of 2023 was just 1.7 million barrels per day, far less than the 3.2 million barrels/d recorded in the second and third quarters.
Although worries are still present, supply has not been impacted by the ongoing fighting in West Asia or the Red Sea situation. According to a recent S&P Global Commodity Insights study, Asian refiners have been forced to reevaluate their oil strategies and create backup plans to ensure consistent feedstock flows as a result of the Red Sea scenario.
There hasn’t been any noticeable disruption to the flow of Russian oil to India, so far. Since India is a net importer of crude oil, meeting around 85% of its energy needs, the decline in global oil prices is noteworthy.
