Oil prices declined on Friday following the previous session’s increase, driven by geopolitical tensions, disruptions in US oil production due to a cold wave, and concerns about China’s slowing demand growth, coupled with expectations of elevated supply.
Brent crude futures dropped by 0.3% to $78.87 per barrel, while US West Texas Intermediate crude futures fell to $74.01, down by seven cents.
Both benchmarks experienced a 2% rise on Thursday, supported by the International Energy Agency’s optimistic outlook on global demand growth, aligning with OPEC’s expectations. The week is poised to end with a 1% to 2% increase in both crude oils.
The International Energy Agency raised its 2024 global oil demand growth forecast, acknowledging strong growth in non-OPEC countries. Despite lower figures than OPEC’s projections, the agency noted a well-supplied market, anticipating a 1.5 million barrels per day increase in global oil supplies to reach 103.5 million barrels per day in 2024. This growth is supported by record production from the United States, Brazil, Guyana, and Canada.
