Oil Holds Near $72 as IEA Continues to Caution on 2025 Outlook
Oil continued to struggle for direction against the backdrop of an oversupply warning from the International Energy Agency and a surging dollar that’s weighing on commodities more broadly.
Global benchmark Brent was stuck near $72 a barrel for a third straight day. Oil markets face a surplus of more than 1 million barrels a day next year and potentially an even bigger one if OPEC+ decides to press ahead with supply hikes.
At the same time the US currency has rallied to the highest level in two years in the aftermath of Donald Trump’s election win. That makes raw materials priced in the greenback more costly for most buyers.
Brent Crude Drifts Near $72Prices have struggled for momentum in November
Crude has alternated between weekly gains and losses since mid-October, with traders weighing OPEC+ supply moves, US monetary policy, and the risks to oil-demand growth, especially in China. There’s widespread concern that the global market will flip to a glut next year, with Morgan Stanley trimming its price forecasts this week citing the softening outlook.
“The coming weeks will be critical in shaping the near-term outlook for the oil market,” said Ole Hvalbye, an analyst at SEB AB. “The continued strength of the US dollar is exerting downward pressure on commodities overall, while ongoing concerns about demand growth are weighing on the outlook for crude.”
The Middle East was also in focus. Israel was rushing to prepare a cease-fire deal in Lebanon as the government adjusted to the prospect of Trump’s White House return, according to a Washington Post report.
In the US, the American Petroleum Institute reported US crude inventories fell 800,000 barrels last week, with levels at the Cushing, Oklahoma, hub shrinking by a larger 1.9 million barrels, according to a document seen by Bloomberg.
Brent for January settlement was little changed at $72.02 a barrel at 10:01 a.m. in London.
WTI for December delivery was steady at $68.46 a barrel.
Source : Bloomberg
