NEW DELHI: Fitch Ratings has revised its near-term oil and European gas priceassumptions, citing OPEC+’s sustained control over supply and ongoing dynamics in the energy market. The adjustments include an increase in 2024 oil price assumptions, driven by OPEC+’s commitment to support oil prices through extended quotas and additional production cuts.
According to Fitch Ratings, the Brent and WTI oil benchmark assumptions for 2024 have been raised, reflecting the deficit in the oil market, estimated to be around 1.2 million barrels per day (MMbpd) in the second half of 2023, according to the International Energy Agency (IEA).
Organization of the Petroleum Exporting Countries (OPEC+)’s recent decisions, including additional cuts in 1Q24, indicate an intent to address this deficit, provided compliance with production cuts remains strong.
