ALBAWABA - As the final trading day of the year unfolds, Brent crude oil is solidifying its position above $77 per barrel. Nevertheless, the commodity is poised to conclude 2023 with a substantial dip of nearly 10%, marking its initial annual loss since 2020.
Despite early-year geopolitical tensions and OPEC+ production cuts, which proved ineffective in boosting prices, Brent crude has experienced a significant 10% drop throughout the year.
Brief spikes in oil prices were observed during the year, driven largely by factors such as OPEC+ production cuts, the Israel-Hamas conflict, and anticipation of interest rate cuts by the US Federal Reserve.
However, the year has been characterized by indicators of rising crude oil production from non-OPEC nations, coupled with an ambiguous demand outlook, contributing to the overall downward trajectory of oil prices.
In the month of December, markets grappled with unforeseen events, including Angola's unexpected departure from OPEC, disruptions in Red Sea trade due to ship attacks by Houthi, and the looming possibility of prolonged conflict in Gaza. These factors have added to the challenges faced by oil markets, capping off a year marked by fluctuating prices and geopolitical uncertainties.
