CRISIL analysis: Crude oil prices may soften on lower risk premium

Amid the shifting sands of geopolitics, Russia remained India's top crude oil supplier accounting for 35 to 40 per cent of total imports

As 2024 winds up and 2025 dawns, there is a semblance of stability in the global oil market. Oil prices are expected to soften in the year ahead as supply-demand dynamics continue to hold sway. 

While production adjustments by the Organization of the Petroleum Exporting Countries (OPEC) will decide the flow, growth prospects of major consumer economies, particularly China, will shape demand.  

Prices could stabilise in the $70 to $75 per barrel range if OPEC reverses supply cuts even as demand growth in large economies moderates and geopolitical uncertainties do not aggravate. On the other hand, in calendar 2024, the