On January 24, 2024, a surge in oil production from the United States, Libya, and Norway led to a slight fall in oil prices.
Brent crude dropped to $79.55 per barrel, a 0.6% decrease. Similarly, U.S. West Texas Intermediate crude fell to $74.37 per barrel, down 0.5%.
This price drop directly resulted from increased production, especially in the U.S., resuming after extreme cold.
This reflects wider trends in the global oil market, including geopolitical tensions and supply chain shifts.
The global supply chain remained robust despite Middle East conflicts threatening key trade routes like the Red Sea.
Norway and Libya’s increased output contributed to this resilience. Norway hit a record in natural gas production, and Libya resumed operations in its largest oil field.
Analysts note that despite geopolitical risks, the 2024 oil supply looks strong.
This is due to unexpected rises in production from non-OPEC+ countries, likely outpacing demand growth.
Thus, the global oil market should remain well-supplied unless major disruptions occur.
Countries like the U.S. are closely watching supply-demand balances and geopolitical developments amid changing global energy dynamics.
Their goal is to maintain market stability and address emerging challenges, ensuring a responsive global oil economy.