An oil and gas expert has given his prediction to GB News on the price of oil going into 2025 as the Organisation of the Petroleum Exporting Countries (Opec) is rumoured to be plotting a “fight back” against US production.
Oil prices have slowly been tracking upward today, reaching $71.91 per barrel but are down by more than 4 per cent this week and down 10 per cent on the month based on the international benchmark Brent crude and the US oil gauge West Texas Intermediate.
The downward trend comes amid fears of a global demand slowdown and a market surplus if Opec sticks to its output plans.
Sitting down for an exclusive interview with GB News, Rey Trevino, Vice President of the privately owned oil and gas exploration and production company Pecos Country Operating, gave his prediction on which direction oil and gas prices could go in the coming months.
Oil expert issues major prediction on price of oil in 2025 as OPEC ‘fights back’ against American productionREUTERS/GB NEWSHe said: “I think we’re probably going to see the global price of oil still be between $65 and $75 a barrel on the Brent prices.
“I do think here in America, like in Texas, we are now averaging below $3 a gallon of gasoline.
“And so I do think we’ll see that continue.
“That being said, I do think we will see possibly these lower oil prices moving into 2025 just due to what Opec is thinking about doing.
“The rumour is they want to add more production to fight against American oil.”
US LATEST:
Rey Trevino predicts the global price of oil still be between $65 and $75 a barrel
REUTERS
The host of the Crude Truth podcast added: “We will be fighting against Opec for years to come and it’s because of the great oil production of the men and women here in America.”
This week, short positions held in Brent futures exceeded the number of longs for the first time on record as conflict in the Middle East drives uncertainty.
Opec agreed in June that it had a plan to restore halted supplies which could bring back 180,000 barrels per day between December 2024 and November 2025.
BMI analysts have maintained a Brent forecast of $81 a barrel for this year and $78 a barrel in 2025, but said “the balance of risk to the outlook lies to the downside.”
However, Bernstein analysts said that assuming Opec brings back its output in December, an oversupplied market and rising inventories could drive Brent down to a low of $55 a barrel in 2025.
Trevino explained that American oil production helps stave off high inflation ratesREUTERSOutlining the importance of American oil and gas production and its impact on the economy, Trevino said: “Oil and gas production in America is not only important for America and American security, but also for the global security of the world.
“Just a few months ago, Opec just kind of tested the waters to say, ‘hey, we’re going to change production’. They didn’t say if they’re going to change it up. They didn’t say if they’re going to change it down. They just kind of tested the waters.
“And just like that, the price of oil dropped tremendously.
“America is continuing to produce more oil than we ever have almost every month, we have new record production here.
“And right now we are actually fighting the price of oil against Opec. So really we are competing with Opec head to head right now.”
He added: “Another good thing right now about the great oil and gas production here in America is that it’s helping fight inflation.
“For those that recall, this Biden administration was anti-oil anti-fracking.
“He was all ‘I’m going to end it on day one. I’m going to do this.’ And next thing you know over the next year, inflation goes sky-high here in America and he got real quiet about oil and gas. Why? Because oil and gas helped bring down inflation here in America.”