Houston October 6 2023: According to oil analysts at Rystad Energy, global crude oil prices are expected to decline to approximately $60 per barrel by 2027 due to a slowdown in demand growth. This projection represents a one-third reduction from the peak price anticipated for the following year, as demand experiences a significant decline.
In contrast to recent Wall Street predictions of oil prices reaching as high as $150 per barrel within the next two years, Rystad's long-term forecast suggests that prices will reach a peak of $91 per barrel next year, before subsequently decreasing to potentially as low as $50 per barrel. Claudio Galimberti, Rystad's Head of North America Research, conveyed this assessment during an event in Houston, emphasizing that this downward trend is mainly attributed to the abundance of oil supply.
Although the OPEC+ alliance has effectively influenced oil prices through output cuts this year, Galimberti cautioned that this strategy may not be sustainable in the long run.
Galimberti also indicated that global oil demand growth, which averaged 3.7 million barrels per day (bpd) in the previous year, is expected to decelerate to 2.4 million bpd in the current year, 1.2 million bpd in 2025, and only 500,000 bpd in 2026.