Oil prices expected to average low $70s this year

Analysts have lowered their forecasts for oil prices, expecting them to average in the low $70s this year. This change is due to rising supply and concerns about weaker demand. The uncertainty in demand is linked to recent trade tensions and tariffs. OPEC+, a group of major oil producers, has confirmed plans to increase production, starting next month. They say this increase can be adjusted based on market conditions. Analysts are worried that the ongoing trade disputes may slow economic growth, leading to lower oil demand. Goldman Sachs has updated its end-of-year forecast for Brent Crude prices down to $71 per barrel. They cite slower economic growth and more oil from OPEC+ as reasons for the change. They warn that risks to their forecast are leaning towards lower prices due to potential tariff escalations and increased production. HSBC and Barclays analysts also predict oil prices will remain low. HSBC foresees a surplus in the oil market this year, while Barclays has cut its Brent Crude price forecast to $74 per barrel. They expect weaker demand growth because of increasing economic uncertainties. Wood Mackenzie has joined the trend of lowering forecasts, projecting an average of $73 per barrel for Brent Crude oil this year. They predict that supply may outpace demand growth, further putting pressure on prices. The main factors influencing oil prices this year will be OPEC+ supply decisions and U.S. trade policies. Geopolitical issues, such as conflicts involving Ukraine and Iran, could also impact prices. OPEC still expects steady demand growth over the next two years, despite the cautious outlook from major energy agencies.