Oil Outlook 2024 Part 2: Record Demand in 2024 Will Lead to Higher Oil Prices

In 2024, the world will consume more petroleum products than ever before. The real question is how high global consumption will climb… [Outsider Club Header] Oct 27, 2023 By Keith Kohl for the Outsider Club Oil Outlook 2024 Part 2: Record Demand in 2024 Will Lead to Higher Oil Prices Which direction will oil prices head in 2024? If you have a dime invested in the oil sector, it’s probably a question that you've mulled over in your head recently. Last week, [we talked]( a little about the supply side of the equation and the potential supply shocks that we’ll feel next year.  Personally, the mere fact that we’re courting the Maduro regime and Venezuela’s flailing oil industry is a sign that the Biden administration is throwing up Hail Marys at this point. Even without U.S. sanctions, few believe the country’s oil output will grow by any meaningful margin — our own EIA projects Venezuela’s production growth will be less than 200,000 barrels per day over the next year. Between pinning our hopes and prayers over a dying Venezuelan oil sector, the open hostility displayed between our current administration and the U.S. oil industry, and the continued output cuts by OPEC and Russia, you’d think things can’t get any worse. But can they? AI Fuels Secret $50 Billion Opportunity Using artificial intelligence, a small company just made the most significant breakthrough in medical history. We’re talking about a revolutionary approach to inventing new medicine that’s up to 10 times faster than traditional drug discovery... Cuts development costs by as much as 80%... And is igniting what Morgan Stanley predicts to be a "$50 billion opportunity" for investors. [Check out all the explosive details here.]( The Demand Delusion Let me be as clear as day about what’s going to happen next year: In 2024, the world will consume more petroleum products than ever before. The real question is how high global consumption will climb… And the answer depends on whom you’re asking. According to the EIA, global liquid fuels consumption growth will contract to 1.3 million barrels per day: [eia oil] In the United States, our petroleum demand is expected to slightly increase by 150,000 barrels per day and average 20.22 million barrels per day. Meanwhile, the EIA sees further declines in global crude inventory during the first half of 2024 thanks to OPEC+ extending their output cuts. But we hold no illusion that U.S. demand will be the driving force behind growing global consumption. For that, we have to look to China and India, which together are expected to consume an average of 21.94 million barrels per day — about one-fifth of the world’s petroleum demand. This Pill Will “Define the Next Decade” A new medical breakthrough smaller than the size of your pinkie is about to reshape human history. Because believe it or not, this tiny pill can eradicate every single sign and symptom of aging and disease... Which leaves you looking and feeling forever young. Don’t believe it? [Check out this proof...]( You can bet we’ll all be paying more for those barrels, too. Sticking to the EIA’s price projections, WTI crude will average $94.19 per barrel. However, keep in mind that this sorely undercuts the incredible risk premium that geopolitical volatility could add to oil prices any day, especially given the powder keg inside the Middle East right now between Israel and Hamas. This month alone we’ve seen Iran calling for a complete oil embargo to be enacted. Remember, Russia’s invasion of Ukraine last year drove crude prices to over $120 per barrel. Now ask yourself how high oil will jump on further escalation in the Middle East. What’s also interesting is that the EIA’s projections are a little too optimistic. The International Energy Agency has forecasted global oil demand to rise by 880,000 barrels per day in 2024, and OPEC is convinced that the number will be closer to 2.4 million barrels per day! Regardless of who’s projections turn more accurate, the fact remains that demand will be at record levels. And that, dear reader, is what will open a window of opportunity for individual investors like us. The only thing left to do is be sure you’re in the right place at the right time — [go ahead and check this one out for yourself.]( Until next time, [Keith Kohl Signature] Keith Kohl P.S. Today’s article was originally published by our sister publication [Energy and Capital](, which is solely dedicated to helping readers profit from the ever-expanding and ever-changing energy sector. If you would like to receive daily free email investment letters from the editors of Energy and Capital, [simply click here.]( Follow the Outsiders [YouTube]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy[here](. Outsider Club, Copyright © Outsider Club LLC, 3 E Read Street Baltimore, MD 21202. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info [here]( including our privacy policy and information on how to manage your subscription. If you are interested in our other publications, please call our customer service team at [1-855-496-0830](tel:/18554960830).