As supply and demand continue to fluctuate, oil prices continue to be a hot topic in international markets. Traders and investors are keeping a close eye on what will happen with crude after months of volatility.
The Kurdistan region of Iraq has resumed exporting crude oil, and OPEC+ recently announced plans for another production increase. All of these actions are increasing the supply of barrels on the market, which may have an immediate negative impact on prices. The Energy Information Administration predicts that average prices may hover around $64 per barrel in 2025 before further easing in 2026, while US output is still robust.
Growth on the demand side is gradual but not rapid. Asia will lead the modest increase in consumption, according to the International Energy Agency. However, the rate might not be sufficient to counteract growing supply, which would limit oil prices.
Three things could happen in the future:
- Benefit: Unexpected supply interruptions or geopolitical risks may cause Brent to rise toward $80–85 per barrel.
- Range-bound: The price of oil may fluctuate between $60 and $75 when supply and demand are balanced.
- Cons: Prices may drop to between $55 and $60 if oversupply increases or the world economy slows.
The most likely scenario at this time is a period of volatile, range-bound trading. To predict the next move, traders should keep an eye on US production levels, global demand signals, and OPEC+ decisions.