Oil prices plunge nearly 20% in 2024—worst drop since 2020
Oil prices have tumbled this year, with WTI below $58 and Brent above $61 a barrel—marking the biggest drop since 2020.
The main reason? Fears of too much oil flooding the market, as OPEC+ and its competitors increase supply.
The International Energy Agency (IEA) warns that next year could see an even bigger surplus.
Why does this matter?
The IEA and OPEC can't agree on what's coming: IEA says oversupply is likely, while OPEC thinks things will balance out.
US oil stockpiles just saw their biggest jump in weeks.
In response, OPEC+ is hitting pause on any production hikes for early 2025.
What's next for your wallet?
Global politics are adding to the uncertainty—think partial US boycott of Venezuelan crude supplies and shifting policies under Trump.
With another big OPEC+ meeting set for January, decisions there could potentially affect everything from gas prices to inflation and trade in the months ahead.