$Spdr S&P Oil & Gas Exploration & Production Etf(XOP)$ $Devon(DVN)$ $apache(APA)$
I'm bearish on oil price and expect price to go down by end of 2024.
1. Global Economic Recovery: The pace of global economic recovery from the COVID-19 pandemic will be a significant driver of oil demand. Strong economic growth could lead to increased demand for oil and support higher prices, while economic slowdowns could have the opposite effect.
2. Geopolitical Tensions: Geopolitical tensions and conflicts in major oil-producing regions such as the Middle East can disrupt supply and contribute to price volatility. Events such as geopolitical conflicts, sanctions, or supply disruptions could impact oil prices in 2024.
3. Energy Transition: The transition towards renewable energy sources and efforts to combat climate change could influence the long-term outlook for oil demand. Government policies, technological advancements, and shifts in consumer preferences towards electric vehicles and clean energy alternatives could impact oil prices.
4. OPEC+ Policy: The policies of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, can influence global oil supply and prices. OPEC+ decisions regarding production levels and supply management agreements could impact oil market dynamics in 2024.
5. Technological Developments: Advances in technology such as hydraulic fracturing (fracking), horizontal drilling, and enhanced oil recovery techniques can impact oil production levels and supply costs. Technological innovations in renewable energy and energy storage could also affect the competitiveness of oil relative to alternative energy sources.
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