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Oil prices drop amid supply concerns, demand expectations provide support
(MENAFN)
Oil prices dropped on Friday, driven by growing concerns about a potential supply surplus in 2025. However, expectations of increased demand from the world's largest oil consumers, the US and China, helped limit the losses.
The international benchmark Brent crude slipped by 0.15 percent, trading at USD73.20 per barrel at 10:19 AM local time (0719 GMT), down from the previous session's close of USD73.31.
Similarly, the US benchmark West Texas Intermediate (WTI) fell by 0.11 percent, reaching USD69.71 per barrel, compared to USD69.79 at the close of the prior trading session.
The International Energy Agency (IEA) published its latest oil market report on Thursday, forecasting a 1.9 million barrels per day (bpd) increase in global oil supply, reaching 104.8 million bpd in 2025. This increase is expected to occur even without the reversal of OPEC+ production cuts.
The IEA also predicted a rise in global oil demand by 1.08 million bpd, reaching around 103.9 million bpd next year. Despite this, the agency pointed to a potential surplus in 2025, as non-OPEC+ countries are expected to boost supply by about 1.5 million bpd.
Additionally, a strengthening US dollar contributed to the dip in crude oil prices. As the dollar rises, oil, which is priced in dollars, becomes more expensive for buyers using other currencies, further weighing on demand.
Oil prices dropped on Friday, driven by growing concerns about a potential supply surplus in 2025. However, expectations of increased demand from the world's largest oil consumers, the US and China, helped limit the losses.
The international benchmark Brent crude slipped by 0.15 percent, trading at USD73.20 per barrel at 10:19 AM local time (0719 GMT), down from the previous session's close of USD73.31.
Similarly, the US benchmark West Texas Intermediate (WTI) fell by 0.11 percent, reaching USD69.71 per barrel, compared to USD69.79 at the close of the prior trading session.
The International Energy Agency (IEA) published its latest oil market report on Thursday, forecasting a 1.9 million barrels per day (bpd) increase in global oil supply, reaching 104.8 million bpd in 2025. This increase is expected to occur even without the reversal of OPEC+ production cuts.
The IEA also predicted a rise in global oil demand by 1.08 million bpd, reaching around 103.9 million bpd next year. Despite this, the agency pointed to a potential surplus in 2025, as non-OPEC+ countries are expected to boost supply by about 1.5 million bpd.
Additionally, a strengthening US dollar contributed to the dip in crude oil prices. As the dollar rises, oil, which is priced in dollars, becomes more expensive for buyers using other currencies, further weighing on demand.
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