The Woodside Energy Group Ltd (ASX: WDS) share price is in the red today.
Shares in the S&P/ASX 200 Index (ASX: XJO) oil and gas stock closed on Friday trading for $36.28. In late morning trade on Monday, shares are changing hands for $35.94, down 0.9%.
That's broadly in line with the 0.8% loss posted by the S&P/ASX 200 Energy Index (ASX: XEJ) at this same time.
That's today's price action for you.
Now, here's why the stars could be aligning to send the Woodside share price higher into 2024.
What's ahead for global energy markets?
First, the Organization of the Petroleum Exporting Countries (OPEC) has released a very bullish assessment of global oil demand for 2024.
In potentially good news for the Woodside share price, the cartel is forecasting a tight market in the year ahead, expecting global oil demand to increase by 2.2 million barrels per day. That will see the world burning through an average of 104.3 million barrels of crude a day in 2024.
"In 2024, solid global economic growth amid continued improvements in China is expected to boost consumption of oil," OPEC said (quoted by Reuters).
With OPEC intent on maintaining its production cuts, for now, and demand on the rise, Brent crude prices could continue to recover from their late June lows of US$72 per barrel. Brent is currently fetching just under US$80 per barrel.
Commenting on the outlook for the oil price, and by connection to the Woodside share price, Toril Bosoni, head of oil markets at the International Energy Agency said (courtesy of Bloomberg):
We're expecting a sharp tightening of the market. As demand increases seasonally, we do think there's a risk that prices will continue to increase into the third quarter.
Jorge Leon, senior vice president of oil market research at Rystad Energy added, "It is the tipping point the market was expecting. It looks like the start of the hot summer in the crude market."
And in what would be good news for Woodside shareholders, Bob McNally, president of Rapidan Energy Group, is forecasting Brent crude to return to US$90 per barrel.
"Barring an abrupt macroeconomic slowdown, the stars are aligning for a zesty crude price rally," McNally said.
Woodside share price snapshot
The Woodside share price is up 2% in 2023. ASX 200 investors who bought shares 12 months ago will be sitting on gains of 15%.
