By The Rio Times | Created at 2024-11-14 21:27:14 | Updated at 2024-11-22 09:02:24
1 week ago
Oil futures closed higher today in a volatile session. The market reacted to key global indicators. The International Energy Agency (IEA) adjusted its projections for global oil demand.
They increased the forecast for this year but lowered it for 2025. This change reflects China’s economic slowdown’s impact on consumption. U.S. oil inventories showed a larger-than-expected weekly increase.
Despite today’s gains, the weekly trend still points to falling prices. Uncertain demand and a stronger dollar continue to put pressure on the commodity.
On the New York Mercantile Exchange, WTI crude for December delivery rose 0.39% to $68.70 per barrel. Brent crude for January on the Intercontinental Exchange increased by 0.39% to $72.56 per barrel.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, noted oil’s slight uptick yesterday. This followed a surprising drop in U.S. oil stocks last week.
Oil Prices Rise Amid Fluctuating Demand Indicators and U.S. Inventory Data. (Photo Internet reproduction)However, gains remained limited. “U.S. crude oil is facing strong resistance near the $68 level,” Ozkardeskaya pointed out. The IEA’s report released today revised global oil demand projections.
Oil Demand and Market Trends
They now expect demand to increase by 921,000 barrels per day (bpd) in 2024. This is up from their previous estimate of 862,000 bpd. For 2025, the IEA slightly lowered its growth forecast from 998,000 bpd to 990,000 bpd.
HFE identifies China as the major factor on the demand side. China has accelerated electric vehicle adoption and shifted to natural gas for road transport fuel. Additionally, China’s GDP growth rate has slowed, requiring less crude oil.
U.S. oil inventories rose by 2.09 million barrels to 429.7 million barrels for the week ending November 8. The Department of Energy reported this increase.
It exceeded analysts’ expectations of a 1.1 million barrel rise, as surveyed by The Wall Street Journal. The oil market remains in flux. Demand uncertainties and inventory fluctuations continue to influence price movements.
In short, traders are closely watching global economic indicators and geopolitical developments. These factors will likely shape the oil market’s direction in the coming weeks.
