The Woodside Energy Group Ltd (ASX: WDS) share price is on course to finish the financial year on a positive note.
At the time of writing, the energy producer's shares are up 0.5% to $34.47.
This means that Woodside's shares are on course to record an 8% gain for the 12 months.
Will FY 2024 be just as successful for the energy giant's shares? Let's find out.
How will the Woodside share price fare in FY 2024?
Predicting how the Woodside share price will perform in the next financial year is tricky.
That's because the company has little say in the price that it sells its energy products. If oil prices crash, then its profits will likely follow suit, and vice versa if oil prices rise.
According to a recent note out of JP Morgan, courtesy of Reuters, the investment bank has revised its average Brent crude oil price forecast for 2023 to US$81 per barrel from US$90 previously. It has also done the same for West Texas Intermediate (WTI) crude oil, which is down to US$76 a barrel from US$84.
Looking to 2024, the broker has lowered its average price forecasts for Brent crude oil to US$83 per barrel from US$98, and for WTI crude oil to US$79 a barrel from US$94.
As a comparison, WTI crude oil is currently fetching US$70 a barrel and Brent crude oil is commanding US$74.54 a barrel.
So, while the broker has trimmed its price forecasts, they still imply prices around 17% and 4% higher, respectively, than current levels.
If these forecasts prove accurate, this could be good news for the Woodside share price in FY 2024. Though, if they were to go even higher, it certainly would be better.
What could do that? OPEC could potentially help.
The oil cartel has a habit of stepping in with production cuts when prices soften. So, it would certainly be worth keeping a close eye on what OPEC does over the next 12 months.
It would also be worth watching China's economic growth. If that picks up, then so too could the demand for oil.
Overall, there are a lot of moving parts at play. But hopefully, they all fall into place for shareholders.
