Oil prices edge down, forecasts for higher oil output, weak demand growth weigh

By Katya Golubkova

TOKYO (Reuters) – Oil prices dropped slightly early on Thursday on expectations of higher global production amid forecasts for weak demand growth, while a firmer dollar also kept a lid on prices.

Brent crude futures were down 6 cents, or 0.08%, at $72.22 a barrel by 0133 GMT. U.S. West Texas Intermediate crude (WTI) futures were down 13 cents, or 0.19%, at $68.30.

The U.S. Energy Information Administration has slightly raised its expectation of U.S. oil output to an average 13.23 million barrels per day this year, or 300,000 bpd higher than last year’s record of 12.93 million bpd, and up from 13.22 million bpd forecast earlier.

The agency also raised its global oil output forecast for 2024 to 102.6 million bpd, from its prior forecast of 102.5 million bpd. For next year, it expects world output of 104.7 million bpd, up from 104.5 million bpd previously.

This comes after the Organization of the Petroleum Exporting Countries on Tuesday again cut its global oil demand growth forecast to 1.82 million bpd in 2024, down from 1.93 million bpd forecast last month, on weak demand in China, India and other regions, sending oil prices to their lowest in nearly two weeks.

The EIA forecasts oil demand growth weaker than OPEC, at about 1 million bpd in 2024, although that is up from its prior forecast of about 900,000 bpd.

Market participants are now waiting for the International Energy Agency’s oil market report, due later in the day, and the EIA’s U.S. crude oil and product stockpiles data for further trading cues.

“A weak outlook for demand in China continues to weigh on sentiment. The stronger USD is creating strong headwinds for commodities,” ANZ Research said in a note.

The U.S. dollar rose to near a seven-month high against major currencies on Wednesday after data showed U.S. inflation for October increased in line with expectations, suggesting the Federal Reserve will keep cutting rates.

A firmer dollar makes commodities priced in the greenback expensive for buyers using other currencies.

This post is originally published on INVESTING.

  • Related Posts

    COP29 host urges collaboration as deal negotiations enter final stage

    By Valerie Volcovici and Nailia Bagirova BAKU (Reuters) – COP29 climate summit host Azerbaijan urged participating countries to bridge their differences and come up with a finance deal on Friday,…

    Gold prices rise, set for strong weekly gains on Russia-Ukraine jitters

    Investing.com– Gold prices rose in Asian trade on Friday and were headed for a strong weekly gain as increased tensions between Russia and Ukraine sparked a broad rush into traditional…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    CMC Markets Wrote Off £2.8M Investment in Blockchain Firm Strike X

    • November 22, 2024
    CMC Markets Wrote Off £2.8M Investment in Blockchain Firm Strike X

    COP29 host urges collaboration as deal negotiations enter final stage

    • November 22, 2024
    COP29 host urges collaboration as deal negotiations enter final stage

    Forex Takes Trump’s Statements Too Seriously. Forecast as of 22.11.2024

    • November 22, 2024
    Forex Takes Trump’s Statements Too Seriously. Forecast as of 22.11.2024

    Short-term Analysis for Oil, Gold, and EURUSD for 22.11.2024

    • November 22, 2024
    Short-term Analysis for Oil, Gold, and EURUSD for 22.11.2024

    Short-term Analysis for BTCUSD, XRPUSD, and ETHUSD for 22.11.2024

    • November 22, 2024
    Short-term Analysis for BTCUSD, XRPUSD, and ETHUSD for 22.11.2024

    Gold prices rise, set for strong weekly gains on Russia-Ukraine jitters

    • November 22, 2024
    Gold prices rise, set for strong weekly gains on Russia-Ukraine jitters