UPDATE 3-Oil prices set to end year 10% lower as demand concerns snap winning streak

Dow Jones Industrial Average +0.56%
NASDAQ-100 -2.05%
S&P 500 index -0.88%
NASDAQ -2.05%

Dow Jones Industrial Average

DJI

37986.40

+0.56%

NASDAQ-100

NDX

17037.65

-2.05%

S&P 500 index

SPX

4967.23

-0.88%

NASDAQ

IXIC

15282.01

-2.05%

Updates prices, detail on OPEC+ market share, changes dateline to London

By Ahmad Ghaddar

- Oil prices are set to end 2023 about 10% lower after two years of gains as geopolitical concerns, production cuts and central bank measures to rein in inflation triggered wild fluctuations in prices.

On Friday, oil climbed after falling 3% the previous day as more shipping firms prepared to transit the Red Sea route. Major firms had stopped using Red Sea routes after Yemen's Houthi militant group began targeting vessels.

Brent crude futures LCOc1 were up 58 cents, or 0.8%, at $77.73 a barrel at 1113 GMT, the last trading day of 2023, while U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 42 cents, or 0.6%, at $72.19.

Yet the two benchmarks are on track for their lowest year-end levels since 2020, when the pandemic battered demand and sent prices nosediving.

Production cuts by the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+, have proved insufficient to prop up prices, with the benchmarks down nearly 20% from the year's highs.

OPEC+ is currently cutting output by around 6 million barrels per day representing about 6% of global supply.

OPEC is facing weakening demand for its crude in the first half of 2024 just as its global market share declines to the lowest since the COVID-19 pandemic on output cuts and member Angola's exit.

A Reuters survey of 34 economists and analysts forecast Brent crude would average $82.56 in 2024, down from November's $84.43 consensus, as they predicted weak global growth would cap demand, while geopolitical tensions could provide support.

Oil's weak year-end performance contrasts with global equities, which are on track to end 2023 higher.

The MSCI equity index .MIWD00000PUS, which tracks shares in 47 countries, is up about 20% as investors ramp up bets on rapid-fire rate cuts from the U.S. Federal Reserve next year.

In the currency market, the dollar was on the back foot and headed for a 2% decline this year after two years of strong gains.


(Additional reporting by Sudarshan Varadhan in Singapore; editing by Jason Neely)

((Ahmad.Ghaddar@thomsonreuters.com; +442075424435; Reuters Messaging: ahmad.ghaddar.thomsonreuters.com@reuters.net))

Every question you ask will be answered
Scan the QR code to contact us
whatsapp
Also you can contact us via