Global oil prices to fall to $70/barrel by end of 2024: Moody's Analytics

Global oil prices are expected to fall to almost $70 per barrel by the end of 2024, said Moody's Analytics in a recent report on the Asia Pacific (APAC) region.

oil prices
IANS Chennai
2 min read Last Updated : Aug 16 2022 | 2:30 PM IST

Global oil prices are expected to fall to almost $70 per barrel by the end of 2024, said Moody's Analytics in a recent report on the Asia Pacific (APAC) region.

Pointing out the increase in oil prices to $120/barrel in June after Russia's invasion of Ukraine and its fall to $100/barrel in August Moody's Analytic said: "This trend will continue; we expect crude prices to fall to almost $70 a barrel by the end of next year."

"For the APAC region's big oil importers, notably Singapore and Hong Kong, this will ease pinching price pressures," Moody's Analytics said.

According to Moody's Analytics, the impact of oil price increase has been varied for the APAC region.

"For net energy importers such as Thailand, Japan, South Korea and Singapore, household energy bills have risen sharply. But for the region's key energy exporters, Indonesia, Malaysia and Australia, households have been more sheltered," the report notes.

But coal and natural gas prices remain stubbornly high.

The APAC region's big liquified natural gas (LNG) importers, including Japan, South Korea, Taiwan and China, are particularly vulnerable to sticky prices.

Likewise, with coal prices elevated, big importers, including India, Pakistan and Vietnam, are paying more for what they need, Moody's Analytics said.

Although higher commodity prices are hurting households and adding to global inflation pressures, some APAC exporters are benefiting from the price premium.

Indonesia and Malaysia are the region's big oil exporters. Higher crude prices have given each an export price boost.

Likewise, Australia is in the midst of an export boom, with elevated coal and LNG prices pushing its terms of trade to a record high. That's not only helping Australian firms tied to mining, but also government revenue through company profit tax receipts and royalties.

Conversely, energy importers such as South Korea and Japan have seen their import prices jump far more than their exports, resulting in a collapse in their terms of trade, said Moody's Analytics.

Higher import costs are putting downward pressure on the region's key currencies, exacerbating weakness from mounting interest rate differentials with the US.

--IANS

vj/ksk/

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Oil Prices

First Published: Aug 16 2022 | 2:30 PM IST

Next Story