December 05, 2023
 

A Clue to What Will Happen to Oil Markets in January

5 days after the OPEC+ Ministerial Meeting and oil has fallen back below $80 per barrel. Saudi Arabia’s Oil Minister Prince Abdulaziz bin Salman tried to calm the markets yesterday in a long interview with Bloomberg. 

The ‘voluntary’ nature of output cuts offers little comfort to oil bulls, but Prince Abdulaziz stated that things will change once “people see the reality of the deal”.

A first clue of what Saudi Arabia really thinks about the state of the oil markets comes this week. 

Saudi Aramco is set to release its Official Selling Prices for crude for January and market watchers expect the Kingdom to slash prices to key market Asia for the first time in seven months in a bid to defend its market share.

Is the party over for OPEC+ producers? 

The unwillingness among OPEC+ members to cut deeper, the prospect of building global crude inventories in Q1 2024 and the expected Saudi discount to Asian customers may lead to a more competitive oil market in the New Year.
 
In the next three weeks, our Global Energy Alert experts dive into the scenarios for oil markets in 2024, providing you with both a fundamental outlook, geopolitical risk analysis and different ways to play the energy market in 2024. 

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