Navigating the Storm: An In-Depth Look at Crude Oil Prices in 2024


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As the world inches forward into 2024, the landscape of the crude oil price market is once again under the spotlight. Recent geopolitical events, including maritime disruptions in the Red Sea and escalating tensions in the Middle East, have ignited concerns about the trajectory of crude oil prices. In this blog post, we will delve into the various factors influencing the crude oil market and explore the potential scenarios that might unfold in the coming months.

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The Impact of Geopolitical Events

The Ukrainian-Russian conflict, which had initially contributed to heightened oil and gas prices, is gradually slowing down. However, fresh challenges are emerging, particularly with the Houthis in Yemen exerting control over the Red Sea and the escalation of “Operation Prosperity Guardian.” These events, coupled with maritime disruptions in the Red Sea, have ignited a renewed debate on the potential impact on crude oil prices.

The Red Sea serves as a vital gateway for approximately 10% of daily crude oil flow, making any disruptions in this region a cause for concern. Ritu Singh, Regional Director of Stone X Group Inc., highlights the uncertainty surrounding crude oil prices in 2024, citing ongoing negotiations among OPEC+ countries regarding production quotas. The maritime disruptions have already led to increased shipping costs, raising transportation expenses and insurance premiums due to growing geopolitical risks.

Potential Consequences on Global Trade and Inflation

The repercussions of disruptions in the Red Sea extend beyond the immediate rise in shipping costs. There is a looming threat of increased costs, potential disruptions to global trade, and a risk premium on oil prices due to geopolitical tensions and supply chain concerns. Fiona Cincotta, Senior Market Analyst at, notes that the deepening geopolitical crisis in the Middle East, coupled with incidents like Iran capturing an oil tanker off the coast of Oman, has contributed to the recent rise in oil prices.

The potential inflationary impact of these events is a cause for concern. Central banks, particularly the Federal Reserve, might hesitate to cut rates if the increased cost of living resulting from maritime disruptions translates into higher consumer prices. This could lead to a strengthening of the US dollar, putting additional pressure on emerging markets and the global economy, potentially slowing down oil demand further.

Differing Impacts on Middle Eastern Economies

The impact of rising crude oil prices is not uniform across Middle Eastern economies. Most Gulf Cooperation Council (GCC) countries, which are major crude oil or natural gas exporters, have currencies pegged to the US dollar. While higher crude oil prices might shield most sectors in their economies, it could negatively affect their burgeoning tourism sector.

GCC countries, such as Saudi Arabia and the UAE, have ambitious plans to boost tourism contributions to their GDPs. However, a potential increase in the US dollar might deter tourists seeking favorable exchange rates, posing a challenge to these nations’ tourism goals. The economic visions of countries like Saudi Arabia, the UAE, and Oman, emphasizing tourism as a key revenue generator, could face headwinds if the exchange rates become less favorable.

Challenges for Levantine and North African Countries

In contrast, Levantine and North African countries, many of which are energy importers, are more likely to face challenges due to higher crude oil prices and subsequent inflation. Countries like Lebanon, Syria, and Jordan heavily rely on imported energy, and their economies are already grappling with high inflation and currency devaluation.

Lebanon, in particular, has witnessed a significant depreciation of its national currency and soaring prices for essential services. The reliance on imported energy exacerbates the economic challenges in these countries, making them more susceptible to the impacts of rising crude oil prices.

Crude Oil Prices: Market Sentiments and the Road Ahead

Market analysts, as highlighted by David Scutt in his article on, note a somewhat desensitized response to geopolitical developments in the Middle East. While initial reactions might lead to a temporary surge in crude oil prices, the markets quickly adjust in the absence of further escalation. This underscores the need for vigilance in monitoring unfolding events in the region.

crude oil prices

As we move forward in 2024, uncertainties abound. Factors such as the US elections, ongoing geopolitical conflicts, and the accelerating energy transition post-COP 28 add layers of complexity to the crude oil market. Investors and analysts alike are closely monitoring these variables, anticipating both short-term volatility and long-term shifts in the market.


In conclusion, the outlook for crude oil prices in 2024 remains uncertain, with a myriad of factors contributing to the complexity of the market. The maritime disruptions in the Red Sea, coupled with geopolitical tensions and global economic considerations, create a dynamic landscape for traders and investors. As the world navigates through these challenges, staying informed and adapting to evolving market conditions will be crucial for making informed decisions and managing risks in the volatile crude oil market of 2024.

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