Oil prices dipped on Monday in light holiday trade amid concerns over a potential supply surplus in 2024 and a strengthening dollar. Brent crude fell 31 cents (0.43%) to $72.63 a barrel, while WTI dropped 22 cents (0.32%) to $69.24. Last week, Brent and WTI lost 2.1% and 2.6%, respectively, as the Federal Reserve signaled caution on further rate cuts, dampening economic growth and oil demand prospects.
Macquarie analysts forecast a supply surplus next year, projecting Brent to average $70.50 a barrel, down from $79.64 in 2023. A stronger dollar added pressure, making oil pricier for non-dollar buyers. Meanwhile, European supply concerns eased after the Druzhba pipeline resumed operations following technical issues.
Sinopec’s prediction that China’s oil consumption will peak by 2027 further weighed on the market. Additionally, President-elect Donald Trump pressed the EU to increase U.S. energy imports or face tariffs and criticized Panama over canal fees, drawing a rebuke from its president.