Oil Little Changed as IEA Surplus Forecast Offsets Rate Cut Optimism
Oil prices were little changed on Thursday as a forecast for ample supply in the oil market offset optimism stemming from rising expectations of a U.S. interest rate cut.
Brent crude futures were up 2 cents at $73.54 a barrel at 1105 GMT. U.S. West Texas Intermediate crude futures rose 3 cents to $70.32. Both benchmarks rose by more than $1 on Wednesday.
The International Energy Agency said it expected the oil market to be comfortably supplied next year, even as it revised its demand outlook for next year up slightly. OPEC cut its demand growth forecast for 2024 for the fifth straight month on Wednesday and by the largest amount yet.
In the U.S., inflation rose slightly, in line with economists' expectations. Investors are broadly expecting another rate cut from the Federal Reserve, spurring some optimism about economic growth and energy demand.
In the world's top oil consumer, the United States, gasoline and distillate inventories rose by more than expected last week, according to data from the Energy Information Administration.
Weak demand, particularly in top importer China, and non-OPEC+ supply growth were two factors behind the move. However, investors anticipate a rise in Chinese demand, after Beijing unveiled plans this week to adopt an "appropriately loose" monetary policy in 2025, which could spur oil demand.
Source : Reuters
