CRUDE OIL PRICES EXPECTED TO DECLINE FURTHER IN 2025

Crude oil prices are expected to continue falling in 2025, with the World Bank projecting an average price of $64 per barrel—down from $77 in 2024. The decline is largely attributed to increased oil output from non-OPEC producers and a slowdown in global demand growth.

Despite ongoing geopolitical tensions involving countries like Russia and Iran, the overall market trend points to lower prices. Analysts at Citigroup have also predicted Brent crude prices will range between $60 and $67 per barrel in 2025. They note that without more significant production cuts from OPEC+, prices could hover closer to $60.

Additional factors influencing this forecast include OPEC+'s recent move to raise output by 411,000 barrels per day in June 2025, and the prevailing market condition known as "contango," which encourages oil stockpiling due to higher future prices.

For consumers, especially in countries like Ghana, the continued drop in oil prices may translate to lower fuel costs at the pump. Ghana, in fact, has already recorded a slight reduction in fuel prices for the third consecutive time.

However, persistently low oil prices could create economic challenges for oil-reliant nations and high-cost producers, potentially leading to reduced investments in the sector