Expert Analysis: Significant Market Correction Expected in Fourth Quarter of 2024
Leading analysts from Macquarie have predicted a major correction in the market for the fourth quarter of 2024, driven by supply/demand imbalances. Despite recent recovery in oil prices, the fundamentals point towards a downturn in the market.
The forecast is based on the projected increase in production from key global regions, which is expected to surpass demand and create a surplus, putting downward pressure on prices.
While the global economy is showing signs of improvement, the demand for oil is not keeping pace with the growing supply, leading to an imbalance that is likely to worsen towards the end of the year.
Additionally, global oil inventories are expected to grow as supply outstrips consumption, historically signaling impending price declines due to oversupply.
Despite geopolitical factors usually supporting oil prices, the current landscape does not provide enough risk to counteract the supply/demand imbalances, leading to a prediction of lower prices without significant disruptions.
The analysts at Macquarie anticipate a correction in the fourth quarter of 2024 as supply surpluses increase and demand remains weak, potentially leading to a sustained period of lower prices in the market.
Analysis:
Leading analysts from Macquarie have predicted a significant market correction in the fourth quarter of 2024 due to supply/demand imbalances in the oil market. This forecast is based on the expected increase in production outpacing demand, leading to a surplus that will put downward pressure on prices. Despite some improvements in the global economy, the weak demand for oil compared to the growing supply is likely to result in lower prices. Investors should be prepared for a potential downturn in the market and adjust their investment strategies accordingly.