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Brent sheds previous gains on concerns about OPEC+’s meeting

Brent futures dropped by 0.37% to $81.83pb today, after closing at $82.13pb in the previous trading day. The fall in the price of Brent was driven by concerns about slowing global growth ahead of OPEC+’s meeting on November 26. Despite expectations of additional output cuts by OPEC and its allies, the International Energy Agency has forecast that oil supply will be in surplus in 2024. This, coupled with lingering demand concerns in China, could threaten oil prices’ bullish outlook in the near term.

Global Jet fuel price to rise in 2024

Global jet fuel prices have fallen by 17.2% year-on-year to $114.74pb in the week ending November 10, 2023. This decline is partly due to falling oil prices in the international market and slow economic recovery in China. However, we expect the global price of jet fuel to pick up in the coming weeks based on the United Nations World Tourism Organization’s (UNWTO) forecast of a 95% rise in international travel demand by 2024. Already, the domestic price of Dual-Purpose-Kerosene (DPK), also used as aviation fuel, has climbed by 30.48% to N1,236.10 per litre in November 2023. In the short-medium term, the price of aviation fuel could taper as the world gradually moves towards a hydrogen-powered aviation sector, with test runs already in motion.

These and other burning economic issues were discussed on the Business Morning programme on Channels TV by FDC’s senior analyst, Oluwatomi Mayowa.

Click the link to watch the video.

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