2024-02-16 11:07:52
By Le Figaro with AFP
Posted 54 minutes ago
Around 10:00 GMT (11:00 a.m. in Paris), the price of a barrel of Brent from the North Sea, for delivery in April, lost 1.00% to 82.03 dollars. Purplexsu – stock.adobe.com
Oil prices fell on Friday, weighed down by estimates of slowing growth in global demand in the latest IEA market report. Around 10:00 GMT (11:00 a.m. in Paris), the price of a barrel of Brent from the North Sea, for delivery in April, lost 1.00% to 82.03 dollars. Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in March, fell 0.88% to $77.34.
“The prospect of a global market glut in 2024, according to forecasts from the IEA (the International Energy Agency, editor’s note), appears to keep oil prices under control despite continued reductions in supply by the main oil producers, comments Han Tan, analyst at Exinity. The IEA said in its monthly oil report on Thursday that “the deceleration (in oil demand growth) will accelerate in 2024”under the effect of economic difficulties, but also progress in energy efficiency and the growth in the number of electric vehicles around the world.
“This month’s report struck a pessimistic tone regarding global demand and non-OPEC supply growth” (Organization of Petroleum Exporting Countries), add DNB analysts. Growth in global demand for black gold is expected to average 1.2 million barrels per day in 2024, “i.e. half of last year’s strong expansion” (2.3 mb/d), according to the IEA. “The post-pandemic phase of expansive growth in global oil demand has largely run its course”argued the Agency.
Bearish sentiment in the oil market began earlier in the week with the release of U.S. Energy Information Administration (EIA) data on U.S. commercial crude reserves on Wednesday, showing ‘a jump of 12 million barrels last week. This sharp increase “Low crude oil inventories in the United States and the slowdown in demand growth predicted by the IEA were excuses enough” for investors to sell crude, says Tamas Varga, analyst at PVM Energy.
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