Energy Outlook 2025: Bearish Market and Growing Crisis for OPEC

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Energy News

ENERGY MARKET,OIL PRICES,OPEC

This article discusses the challenges facing the energy sector in 2025, including a bearish oil market, rising power demand, and climate change concerns. It highlights the growing crisis for OPEC as global demand slows and electric vehicles become more prevalent.

Happy new year, and welcome back to Energy Source. President Joe Biden announced a new ban on offshore oil and gas drilling across most of the US coastline on Monday in a move that is expected to complicate incoming president Donald Trump’s agenda to “drill, baby, drill” and boost the country’s already record oil production.

Elsewhere, millions of Americans remained under weather advisories on Monday as a winter storm brought freezing temperatures and left nearly 250,000 households without power. The Henry Hub benchmark price for natural gas closed 10 per cent higher yesterday at $3.71 per million British thermal units. Today’s newsletter explores five key questions facing the energy sector in 2025. This year, countries will grapple with a bearish oil market, rising power demand, and domestic and regional crises that challenge their climate and emissions reduction pledges. Thanks for reading, Amanda The price pressures that plagued Opec last year will continue to mount in 2025. Markets are expected to remain bearish as global demand slows, especially in China, and non-Opec countries pump more crude. JPMorgan projects an “outright bearish” market this year, with global oil demand growth decelerating from 1.3mn barrels a day to 1.1mn b/d while non Opec+ supply growth averages 1.8mn b/d. The bank expects Brent crude, the global benchmark, to average $73 per barrel in 2025, down from $80 per barrel last year. Goldman Sachs expects prices to average $76 per barrel. The glut underscores the growing crisis facing the oil cartel as the world transitions to a system that consumes less crude. S&P Global Commodity Insights predicts global gasoline demand will peak this year, citing growing electric vehicle adoption and fuel efficiency gains in internal combustion engine cars. In December, Opec delayed plans to reintroduce 2.2mn b/d until April after a series of supply cuts that began in 2022 to support price

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