Oil Prices Rise Amid Positive Producer Price Data and Demand Concerns From Investing.com


Investing.com– Oil prices fell slightly in Asian trade on Friday, weighed down by lingering concerns about slowing demand following a warning from the International Energy Agency and a batch of weak economic data.

However, crude oil prices were set for slight weekly gains after experiencing volatile swings during the week. The decline offered relief to oil prices, after the greenback fell sharply from three-month highs following weak U.S. data.

US inflation data, due later in the day, is now in focus for further guidance on the path of interest rates. Stronger-than-expected data released earlier in the week saw markets largely discount the prospect of early interest rate cuts by the Federal Reserve.

expiring in April fell 0.2% to $82.71 a barrel, while it fell 0.1% to $77.49 a barrel at 8:15 pm ET (01:15 GMT). Both contracts rose about 1% on the week.

But the outlook for oil prices remains bleak, especially after an IEA report on Thursday that said global oil demand is slowing. The organization cut its global oil growth forecast in 2024 to 1.22 million barrels per day (bpd) from 1.24 million bpd.

The agency also expects supplies to increase in 2024 amid record U.S. production and reluctance by members of the Organization of the Petroleum Exporting Countries to implement deeper supply cuts. The IEA expects supply to grow by 1.7 million barrels per day in 2024, compared to its previous forecast of 1.5 million barrels per day.

Signs of recession from the world’s major economies are also casting a shadow on the outlook for oil demand. Both the United Kingdom and the United Kingdom entered a technical recession in the fourth quarter of 2023, GDP data showed on Thursday.

growth remained unchanged in the fourth quarter after the bloc also entered recession in the third quarter.

The readings take into account concerns that slowing economic growth could reduce oil demand in the coming months. China, the top importer, is also grappling with a slow economic recovery, although the week-long Lunar New Year holiday is expected to offer some support.

On the supply side, inventory data released earlier in the week showed a massive jump in the United States, with production rebounding to record levels, exceeding 13 million barrels daily.

Strong US production is expected to largely fill any supply gaps from OPEC, as well as potential supply disruptions arising from the Middle East.

Source link

Leave a Reply

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