Friday 16 February 2024

Oil slips as weaker IEA demand outlook offsets rate cut hopes | Reuters

Oil slips as weaker IEA demand outlook offsets rate cut hopes | Reuters

Oil slipped on Friday as a forecast of slowing demand by the International Energy Agency offset support from geopolitical tensions and hopes that the U.S. Federal Reserve might cut interest rates sooner than expected.

Weighing on sentiment, the IEA said on Thursday that global oil demand growth was losing momentum and it trimmed its 2024 growth forecast, in contrast to the view held by the Organization of the Petroleum Exporting Countries (OPEC).

"There was a tentative attempt to recover yesterday morning, but hopes were shattered after the IEA published its updated supply-demand outlook," said Tamas Varga of oil broker PVM.

Brent crude futures were down 53 cents, or 0.6%, at $82.33 a barrel at 0915 GMT. U.S. West Texas Intermediate crude futures fell 33 cents to $77.70.

Both contracts climbed over 1% on Thursday as a larger-than-expected drop in U.S. retail sales prompted hopes the Federal Reserve will soon start cutting interest rates, which could be positive for oil demand.

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