Zedcrest forecast brent to average $68 & $73/barrel in 2025

The oil market has been a rollercoaster ride in 2024, with supply constraints, geopolitical tensions, and fluctuating demand shaping the landscape. A recent report by Zedcrest predicts significant shifts in the global oil market for 2025, projecting Brent crude prices to average between $68 and $73 per barrel. Samuel Aladegbaye, Investment Research Analyst at Zedcrest Wealth, discussed the key highlights and trends during a recent interview with CNBC Africa. Aladegbaye highlighted the impact of geopolitical tensions, such as the Russia-Ukraine conflict and developments in the Middle East, on oil prices. He also noted the influence of supply and demand dynamics, including OPEC's production cuts and China's shift towards greener alternatives like electric vehicles. In addition, Aladegbaye discussed the effectiveness of OPEC's strategy in maintaining price levels, with a target range around $70 per barrel. He emphasized the role of non-OPEC producers like the US shale industry in taking advantage of high prices and gaining market share. The report also delved into oil grades favored by strong demand, such as US shale, Brazil's pre-salt, and Guyana's crude, while highlighting weaker demand for Chinese-linked products and some African grades. On a domestic level, the discussion turned to Nigeria's oil production challenges, including meeting OPEC quotas, combatting theft and vandalism, and investing in exploration and production efforts. Despite these hurdles, Aladegbaye expressed optimism for Nigeria's oil sector's outlook, pointing to investments by major oil companies like ExxonMobil and Chevron's recent oil field discovery. Overall, the Zedcrest report and Aladegbaye's insights provide a comprehensive overview of the oil market's complexities and potential trajectories for 2025.