- Oil prices fall to $82.71 on demand concerns and IEA warning.
- The International Energy Agency expects a rise of 1.22 million barrels per day in 2024 amid oversupply
- S. Oil production rises to more than 13 million barrels per day, representing a major production milestone and potential market impact.
Oil prices saw a marginal decline in Asian trade on Friday. This decline reflects ongoing concerns about demand. This is due to warnings from the International Energy Agency and weak economic indicators. Brent crude futures fell to $82.71 per barrel. West Texas Intermediate crude futures also fell to $77.49 per barrel. Despite this, both contracts recorded gains of 1% during the week.
The International Energy Agency reduces demand in 2024 and is looking at an increase of 1.22 million barrels per day
The latest report by the International Energy Agency casts a shadow over future demand. It slightly lowered its forecast for oil demand growth in 2024. Global demand is now expected to rise by 1.22 million barrels per day. In addition, the International Energy Agency expects a rise in supply, thanks to US production and OPEC's stance. The United States sets records in oil production. Meanwhile, major economies such as the United Kingdom and Japan are facing recession. Growth in the euro area remains stagnant. These factors contribute to creating a bleak demand outlook. China's economic recovery is slow, although the Lunar New Year may provide a brief boost.
US oil production exceeds 13 million barrels per day
US inventory data revealed an increase in crude inventories. It indicates a strong recovery in production. US production now exceeds 13 million barrels per day. Strong US production could compensate for supply gaps from OPEC and turmoil in the Middle East. Deals concluded by ExxonMobil, Chevron and Occidental Petroleum underscore the low-cost oil fields. These fields remain profitable even when oil prices are low. This strategy may mitigate the impact of price and demand volatility.
The oil market remains a complex tapestry of supply, demand, and geopolitical influences. Current trends suggest cautious navigation during turbulent times. However, the industry's ability to adapt and strategic moves offer a glimpse of resilience amid challenges.
