Brent – the oil price is "exposed to further price spikes in 2024"

<p>Summary comments from ANZ on oil, saying that conditions are in place for even higher prices into year end and 2024.</p><p>On the supply side:</p><ul><li>Production cuts, led by Saudi Arabia, stabilised the market in July but are now likely to push the market into a 2mb/d deficit in Q4.</li></ul><p> On demand growth rising:</p><ul><li>China’s demand has remained resilient, with domestic oil refiners ramping up processing to a record level last month. This has been aided by strong summer demand for fuels … as economic activity picks up. </li><li>India and the US have been surprising sources of strength. </li><li>Global oil demand is on track to grow at 2.1mb/d in 2023, an estimate backed up by OPEC and IEA. Both energy groups warned that the oil market would shift into a significant deficit through the year-end. </li></ul><p>ANZ conclude:</p><ul><li>The subsequent drawdown in inventories in Q4 leaves the market exposed to further price spikes in 2024.</li></ul><p>—-</p><p>Kicking off the week:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.