Deloitte Canada predicts 2024 energy market to be ‘a little softer’: What this means for investors

Energy market looks 'a little softer' in 2024: Deloitte Canada

“Deloitte Canada’s Forecast of Future Energy Market”

The energy market is a significant pillar of the global economy and as Deloitte Canada predicts, 2024 might see a softer outlook for the energy market compared to previous years. This projection comes amid a gradual decline in oil markets over the past three months, with volatility becoming a prominent feature of the industry. Andrew Botterill, Deloitte Canada’s national oil, gas, and chemicals leader, attributes the market’s fluctuations to an overabundance of oil and natural gas production and sluggish growth in demand. Despite the challenges, the approval of the Trans Mountain pipeline expansion seems to offer a glimmer of hope for change.

“Market Fluctuations: The Current Situation”

The global energy market is constantly in flux, and the past few months have seen a steady decline in the oil markets. As of Wednesday, West Texas Intermediate crude was trading at around US$72 per barrel, down significantly from the nearly $94 per barrel it hit in late September. The market’s response to these changes has been swift, as explained by Andrew Botterill. The rush of drilling and development activities triggered by the high oil prices of the past few years have subsided, leaving the market in a delicate state.

“Trans Mountain Approval: A Silver Lining for Canadian Energy”

The anticipated opening of the Trans Mountain pipeline offers a ray of hope for the Canadian energy sector. Andrew Botterill highlights its potential to provide Canadian oil companies with better access to global markets and bridge the gap between West Texas Intermediate and Western Canadian Select crude prices. This expansion, although controversial, could position Canada as a significant player in the international energy game.

“Conclusion: Navigating Uncertain Waters”

The energy market landscape remains complex and shifting, with a myriad of factors contributing to its volatility. While the prospect of easing market conditions and the Trans Mountain pipeline expansion offer some optimism, there are no guarantees. For now, market players must remain nimble and adaptable to navigate the uncertainties that lie ahead. Deloitte Canada’s forecast is simply a prediction, and the energy market’s fate will ultimately be shaped by a multitude of real-world variables.



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