share_log

Oil Prices Steady As Market Balances IEA Surplus Forecast With Rate Cut Optimism

Business Today ·  Dec 13, 2024 08:43
big

Oil prices closed nearly flat on Thursday, reflecting mixed sentiments as the International Energy Agency (IEA) projected ample oil supplies while optimism about a potential Federal Reserve interest rate cut supported demand expectations.

Brent crude futures edged lower by 11 cents, or 0.15%, to settle at US$73.41 per barrel, while US West Texas Intermediate (WTI) crude fell 27 cents, or 0.38%, to US$70.02 per barrel.

The IEA slightly raised its oil demand growth forecast for 2025 but maintained that the market would remain well-supplied. In contrast, OPEC cut its demand growth forecast for 2024 for the fifth consecutive month.

US inflation data for November showed a modest rise, in line with market expectations, reinforcing speculation of a rate cut by the Federal Reserve at its upcoming meeting. Analysts suggest this could bolster economic growth and energy demand.

In China, crude imports surged 14% year-on-year in November, marking the first annual increase in seven months. Meanwhile, in the US, gasoline and distillate inventories grew more than anticipated, reflecting resilient demand.

Tensions in the Middle East also influenced prices. Iran agreed to stricter monitoring of its Fordow nuclear site, easing some geopolitical concerns.

Despite slower-than-expected global oil demand growth this month, resilience in key markets like China and expectations of lower US interest rates continue to provide support to oil prices.

Reuters

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
    Write a comment