CALGARY — Analysts say 2024 will be a year of weaker oil prices, something that should bring some relief to weary consumers after two years of soaring energy costs.
Oil prices were volatile in 2023, and have already declined approximately 16 per cent since October due to a combination of factors including growing global supply and slowing demand.
A new report by Deloitte Canada is forecasting the U.S. benchmark West Texas Intermediate oil price to average US$72 for the year ahead.
That's more than seven per cent below 2023's average, and a whopping 29 per cent below 2022, when Russia's invasion of Ukraine pushed oil prices to record-setting levels.
Analysts say the lower prices mean Canadian oil producers will likely be cautious this year with their capital spending.
But they say consumers should benefit in terms of lower prices for home heating and at the gas pumps in 2024.
This report by The Canadian Press was first published Jan. 8, 2024.
The Canadian Press
