Wood Mackenzie Projects $73/Barrel in '25

According to its latest market outlook, Wood Mackenzie projects that Brent crude oil prices will average $73.00 per barrel (bbl) in 2025. The forecast considers geopolitical and economic factors, including potential peace talks between Russia and the US regarding the Ukraine conflict, ongoing tariffs, and sanctions against Iran.

The outlook anticipates global oil demand to increase by 1.2 million barrels per day (b/d) in 2025, while non-OPEC production is expected to grow by 1.5 million b/d. This supply growth outpacing demand creates challenges for OPEC+ (OPEC plus 10 non-OPEC countries) in managing market balance.

Depending on market conditions, the analysis assumes OPEC+ will follow its plan to ease 2.2 million b/d of production restraint between April 2025 and September 2026. Regional demand growth is expected to be led by Asia Pacific, with China and India as key drivers.

Wood Mackenzie's forecast considers various uncertainties, including the potential lifting of US sanctions against Russia, the impact of existing tariffs on global GDP growth, and the effects of sanctions on Iran's oil production.

For demand, an anticipated soft recovery in global industrial production helps support the projected gains this