Crude Oil Market Faces Downturn in 2025: ICICI Bank Forecast

Global crude oil prices are anticipated to trend lower in 2025, per ICICI Bank's recent report. The institution has adjusted its forecast for Brent crude, now predicting it will trade between USD 60 and USD 70 per barrel. Alarmingly, a potential drop to USD 55 per barrel looms.

ICICI Bank has revised its outlook from a prior forecast of USD 65 to USD 80 due to a projected oil market surplus. The bank expects the average oil price in 2025 to settle around USD 65, down from the earlier estimate of USD 72, influenced by factors like OPEC's production levels, China's economic stimulus, and geopolitical issues involving Iran.

The report suggests an overall downward trend in oil pricing driven by a projected surplus of 1 million barrels per day due to increased production from both OPEC and non-OPEC nations amidst stagnant demand. Data from March and April 2025 corroborates this surplus, contrasting with the deficit in 2024 and exerting more pressure on prices throughout the year, absent any geopolitical disruptions.

(With inputs from agencies.)