Oil prices decline on oversupply concerns, weekly loss expected
OIL & GAS

Oil prices decline on oversupply concerns, weekly loss expected

Oil prices slipped amid concerns over oversupply and a stronger dollar, despite a significant drop in U.S. fuel stocks. Brent crude futures fell by 30 cents, or 0.41%, to $72.26 per barrel, while U.S. West Texas Intermediate (WTI) crude futures declined by 25 cents, or 0.36%, to $68.45 per barrel as of 0105 GMT.

For the week, Brent is poised for a 2.2% drop, and WTI is set for a 2.7% decline.

U.S. crude inventories rose by 2.1 million barrels last week, according to the Energy Information Administration (EIA), far exceeding the expected 750,000-barrel increase. However, gasoline stocks fell by 4.4 million barrels, reaching their lowest levels since November 2022, defying predictions of a 600,000-barrel build. Distillate inventories, including diesel and heating oil, also saw an unexpected decline of 1.4 million barrels.

While signs of stronger fuel demand provided some support, ANZ analyst Daniel Hynes noted that the market remains pressured by a bleak demand outlook.

The International Energy Agency (IEA) forecasts global oil supply to exceed demand in 2025, citing rising production from non-OPEC+ producers like the U.S., despite ongoing production cuts. The IEA adjusted its 2024 demand growth forecast slightly upward to 920,000 barrels per day (bpd) but left its 2025 outlook nearly unchanged at 990,000 bpd.

OPEC recently revised its global demand growth forecasts downward for 2024 and 2025, marking its fourth consecutive downgrade, citing economic weaknesses in China, India, and other regions.

Adding further pressure, the U.S. dollar surged to a one-year high, driven by higher yields and the impact of Donald Trump's presidential election victory. The stronger dollar reduces the purchasing power of buyers using other currencies, weighing on oil prices. (ET)

Oil prices slipped amid concerns over oversupply and a stronger dollar, despite a significant drop in U.S. fuel stocks. Brent crude futures fell by 30 cents, or 0.41%, to $72.26 per barrel, while U.S. West Texas Intermediate (WTI) crude futures declined by 25 cents, or 0.36%, to $68.45 per barrel as of 0105 GMT. For the week, Brent is poised for a 2.2% drop, and WTI is set for a 2.7% decline. U.S. crude inventories rose by 2.1 million barrels last week, according to the Energy Information Administration (EIA), far exceeding the expected 750,000-barrel increase. However, gasoline stocks fell by 4.4 million barrels, reaching their lowest levels since November 2022, defying predictions of a 600,000-barrel build. Distillate inventories, including diesel and heating oil, also saw an unexpected decline of 1.4 million barrels. While signs of stronger fuel demand provided some support, ANZ analyst Daniel Hynes noted that the market remains pressured by a bleak demand outlook. The International Energy Agency (IEA) forecasts global oil supply to exceed demand in 2025, citing rising production from non-OPEC+ producers like the U.S., despite ongoing production cuts. The IEA adjusted its 2024 demand growth forecast slightly upward to 920,000 barrels per day (bpd) but left its 2025 outlook nearly unchanged at 990,000 bpd. OPEC recently revised its global demand growth forecasts downward for 2024 and 2025, marking its fourth consecutive downgrade, citing economic weaknesses in China, India, and other regions. Adding further pressure, the U.S. dollar surged to a one-year high, driven by higher yields and the impact of Donald Trump's presidential election victory. The stronger dollar reduces the purchasing power of buyers using other currencies, weighing on oil prices. (ET)

Next Story
Infrastructure Energy

Mizoram To Build Rs 139 Billion Pumped Storage Power Plant

Mizoram Chief Minister Lalduhoma on Friday announced plans to construct a 2,400 MW pumped storage hydroelectric power plant in Hnahthial district, marking a major step towards achieving energy self-sufficiency in the state. Addressing the Mizo Students’ Union general conference in Hnahthial town, the Chief Minister said the plant would be developed across the Darzo Nallah, a tributary of the Tuipui river. Once operational, the project is expected to play a pivotal role in meeting Mizoram’s rising electricity demand and reducing dependence on imported power. Officials from the State Power..

Next Story
Infrastructure Energy

Centre Plans Nationwide Opening Of Power Retail Market

India is preparing to open up its retail electricity market to private companies nationwide, effectively ending the long-standing monopoly of state-run power distributors in most regions, according to a draft bill released by the Union Power Ministry on Friday. The move will enable major private sector players — including Adani Enterprises, Tata Power, Torrent Power, and CESC — to expand their presence across the country’s electricity distribution landscape. A similar reform attempt in 2022 had faced strong opposition from state-run distribution companies (discoms), which currently dom..

Next Story
Infrastructure Energy

CEA Sets 100 GW Nuclear Target For India By 2047

In a landmark step marking its 52nd Foundation Day, the Central Electricity Authority (CEA) unveiled an ambitious roadmap to develop 100 gigawatts (GW) of nuclear power capacity by 2047, aligning with India’s long-term Net-Zero commitment and energy security objectives. The event, held at the Central Water Commission auditorium in New Delhi’s R.K. Puram, was attended by Pankaj Agarwal, Secretary, Ministry of Power, who served as the Chief Guest. The roadmap sets out a detailed plan to expand India’s nuclear capacity from its current level of approximately 8,180 MW as of early 2025, outl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?