The price of WTI crude oil futures experienced a notable decline, falling to around $67.6 per barrel on Thursday, marking a continuation of a nearly 3% drop from the previous session. This downward trend is attributed largely to developments in Saudi Arabia, where the leading oil exporter has revised its crude oil price target in anticipation of increasing production.
In a potentially stabilizing move, Libya's competing factions have reached an agreement to establish a process for appointing a central bank governor, which may alleviate the challenges surrounding oil revenue and facilitate the resumption of exports.
Despite recent monetary support measures aimed at bolstering economic activity in China, concerns regarding oil demand persist, particularly in the world's largest oil consumer. Additionally, EIA data indicates a substantial decline in US crude stocks, which decreased by 4.5 million barrels last week, surpassing the anticipated draw of 1.4 million barrels.
Furthermore, ongoing tensions and escalating violence in the Middle East continue to pose risks for supply disruptions, which may lend some support to oil prices.
Since the start of 2024, crude oil has decreased by $3.56 per barrel or 4.97%. Current projections indicate an expectation that crude oil will trade at $74.09 per barrel by the end of the current quarter, with a longer-term outlook estimating a price of $75.75 in twelve months, according to global macro models and analyst expectations.