The market remains concerned about the increase in supply and the decrease in demand.
The prices of oil are trading virtually stable on Thursday, with traders cautious after declines earlier this week due to the strength of the US dollar and concerns about increasing supply amid slow demand growth.
In the morning, crude oil futures Brent rose 17 cents to $72.45 a barrel, while crude oil futures West Texas Intermediate of USA They rose 14 cents to $68.57.
“The main driver of oil prices, both in the short term and in the future, will be the direction of the dollar The recent rise in the dollar has been a key bearish pressure, said Lim, who expects oil markets to remain volatile, with a bearish bias.
He dollar rose to a one-year high on Thursday, extending gains from Wednesday’s seven-month high against major currencies after data showed US inflation in October rose in line with expectations. This, in turn, stoked fears of a slowdown in demand in USA.
The market is “a mixture of factors weak demand”, with the latest concern being a rebound in 10-year US Treasury yields and a rise in the 10-year breakeven inflation rate to 2.35%, said OANDA senior market analyst Kelvin Wong.
“(This) increases the chances of a superficial cycle of interest rate cuts by the Federal Reserve “Looking ahead to 2025 (and) overall, there is less liquidity to drive an increase in oil demand,” he added.
The International Energy Agency (IEA) said on Thursday that global oil supply will exceed demand in 2025 even if oil cuts remain in place. OPEC+, that brings together the Organization of Petroleum Exporting Countries and allies like Russia, since the increasing production of USA and other external producers exceeds the slow demand.
The agency based in Paris It raised its 2024 demand growth forecast by 60,000 bpd, and left its 2025 oil demand growth forecast little changed at 990,000 bpd. With the slowdown in demand in China, There are few supply and demand factors supporting the rise in oil markets, said independent market analyst Tina Teng.
Source: Ambito
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