Macquarie Anticipates Oil Prices to Test New Lows in 2025

SEATTLE (Oil Monster): Macquarie strategists predict that in 2025, oil prices will drop to all-time lows.

Trump's reelection as president of the United States is anticipated to disrupt Russian oil exports by causing Israel to become more aggressive militarily toward Iran and to launch more intense Ukrainian strikes in Russia. Macquarie, however, considers these risks to be unlikely. Oil prices will hit new lows as a result of waning geopolitical risks and the rise of fundamentally pessimistic factors.

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The strategists pointed out that Brent dropped over $3 per barrel last week, adding to the disappointment after the Chinese government announced stimulus plans and OPEC lowered its optimistic demand forecasts for the fourth consecutive month.

Meanwhile, according to other market research reports, supply problems may be exacerbated by the possible disruption of Russian oil deliveries. However, because of rising shipments and declining local demand, Iraq's fuel oil exports are expected to reach record highs this year. Because any increase in oil exports could result in lower commodity prices, this could further stifle market prospects.