Oil prices increase on Tuesday November 14, 2023
On Tuesday 14 November 2023, oil prices posted an increase up to US$83/bbl. This was favorable for oil producers as the previous week saw oil decline to US$79/bbl by Friday Nov 11, 2023.
The IEA's updated forecast is signaling an anticipated record high global oil demand, reaching 102 million barrels a day in 2023. This adjustment, adding 100,000 barrels a day to this year's demand estimate, shows the market's response to the revised data.
However, the IEA also suggests a more tempered outlook for next year due to anticipated factors like slower global growth and higher interest rates. ?
The upcoming OPEC+ meeting in November 2023 gains importance in this context. The market's attention is directed toward potential decisions regarding Saudi Arabia's existing 1 million barrels a day cut and the extension of OPEC+ cuts into 2024. Any announcements about these cuts could significantly influence market sentiment and supply dynamics.
The likely outcome is oil prices may consolidate between November 11, 2023 and aftermath 26, 2023 where the market can receive a direction in the aftermath of the OPEC+ meeting. There may be a rise in the price of oil until year end 2023. Short term volatility may arise from unexpected changes in geopolitics.