Oil prices may sag this year amid bountiful supply despite Opec's best efforts to pump less 

Brent crude rose by $1 to $77.30 a barrel on Wednesday after reports of a disruption to Libya's top oilfield added to supply concerns emanating from tensions in the Red Sea

An array of pumpjacks operate near the site of an oil and gas well in Midland, Texas.

Supply is back in the driver’s seat for global oil markets this year. At issue is rising crude production from non-Opec+ nations including the US, which could outstrip global demand that’s still growing but at a slower pace. The oil cartel’s response has been to pledge deeper output cuts, but traders are sceptical they will be sufficiently implemented to fully eliminate a surplus.

The combination has already pushed crude to its first annual decline since 2020, upending expectations of higher prices stemming from a post-pandemic recovery.