ISLAMABAD, November 15, 2024 – Oil prices fell slightly on Friday as concerns about oversupply and weakening demand, fueled by a stronger U.S. dollar, outweighed a sharp decline in U.S. fuel stocks.
By 0105 GMT, Brent crude futures had dropped 30 cents, or 0.41%, to $72.26 per barrel, while U.S. West Texas Intermediate (WTI) crude was down 25 cents, or 0.36%, at $68.45.
For the week, both benchmarks are on track for losses, with Brent set to fall by around 2.2% and WTI expected to decline 2.7%.
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The U.S. Energy Information Administration (EIA) reported on Thursday that U.S. crude inventories increased by 2.1 million barrels last week, a much larger build than analysts had expected.
Gasoline stocks, however, dropped by 4.4 million barrels, the biggest weekly decline since November 2022, pointing to tightening supplies. Analysts had predicted a much smaller build of 600,000 barrels.
Distillate stockpiles, which include diesel and heating oil, also fell by 1.4 million barrels, contrary to expectations for an increase.
Despite the drawdowns in fuel stocks, ANZ analyst Daniel Hynes noted that oil prices were under pressure due to ongoing concerns over the demand outlook.
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The International Energy Agency (IEA) warned that global oil supply would outpace demand in 2025, even if OPEC+ production cuts remain in place.
The IEA cited rising output from non-OPEC countries, particularly the United States, as a key factor in the anticipated supply surplus.
However, the agency raised its forecast for 2024 oil demand growth by 60,000 barrels per day, to 920,000 bpd, while leaving its 2025 growth forecast largely unchanged at 990,000 bpd.
In contrast, OPEC has downgraded its global oil demand growth projections for both 2024 and 2025, reflecting ongoing weakness in major markets like China and India.
This marks the fourth consecutive downward revision of OPEC’s demand outlook for this year.
