XOM - Oil's Rollercoaster 2023: Crude's Volatile Year In Review And What Awaits In 2024 | Benzinga
Crude oil faced a challenging trajectory in 2023, lagging behind various financial assets, and is on track to end the year in the red. Despite robust demand sustained by the global economy’s resilience in the face of inflation and high interest rates, oil struggled to maintain its momentum.
OPEC Cuts Ineffective: The West Texas Intermediate (WTI) grade, known for its lower sulfur content, began the year with a modest 3.7% gain, only to grapple with a turbulent journey throughout.
Crude oil’s trajectory was uneven through the COVID-19 years, pulling back by 21% in 2020 followed by a strong 51% rebound in 2021. However, 2023 told a different story.
Starting this year at $80.18, WTI witnessed volatility in the first half, surging above $90 in September before reversing course. Currently, it’s trading down about 8% for the year.
The United States Oil Fund, LP (NYSE:USO), which tracks WTI crude oil, reflects this trend, showing a 1.1% year-to-date loss.
Chart Courtesy of Benzinga
The price weakness has come despite some of the members of the OPEC+ oil coalition persisting with their voluntary production ...