Bearish Outlook on Oil Prices

The forecast for crude oil prices in 2025 suggests a considerable bearish outlook, with expectations of prices ranging from $60 to $70 per barrel for WTI. This pessimism stems from an oversupply of oil as production has increased from non-OECD countries like Norway, Guyana, Brazil, Canada, and the United States, alongside potential OPEC quota relaxations. The outlook is compounded by the anticipated addition of 1.2 to 1.4 million barrels a day from OPEC, alongside significant unsold inventories. The surplus in the market raises concerns that prices could dip even lower, with a potential for a five-handle price point should demand fail to keep pace.