Oil prices fell during trading today, Friday, February 16, 2024, due to the International Energy Agency’s expectations of a slowdown in demand.
This comes after gains in the previous session, which were supported by weak US retail sales data that raised optimism that the Federal Reserve may cut interest rates sooner than expected.
Yesterday, Thursday, February 15, oil prices ended their trading at an increase of 2% after two sessions of decline due to fears of a decline in demand for crude.
Oil prices today
By 07:32 AM GMT (10:32 AM Mecca time), futures prices for standard Brent crude – April 2024 delivery – fell by 0.23%, reaching $82.67 per barrel.
At the same time, US West Texas Intermediate crude futures – for March 2024 delivery – fell by 0.01% to $78.02 per barrel, according to figures seen by the specialized energy platform.
The two benchmark crude oils (Brent and West Texas Intermediate) rose yesterday, Thursday, after a larger-than-expected decline in US retail sales raised hopes that the Federal Reserve (the US central bank) would soon begin lowering interest rates, which could be positive for demand for oil. .
Oil price analysis
The US Department of Commerce report showed that retail sales fell 0.8% in January, the largest decline since February 2023, exceeding the expectations of economists surveyed by the agency. Reuters Their opinion is that retail sales will decrease by 0.1%.
Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities, said that hopes for lower interest rates in the United States provided support on Thursday for oil prices, but investors are now adjusting their positions before the weekend. A week long in the United States.
Fuel pump at a station in India – Photo from Reuters
“While closely monitoring interest rate trends, investors will continue to evaluate whether geopolitical risks in the Middle East will spill over into crude oil supply chains,” he added, expecting WTI to trade in the $70 to $80 range for a while.
Putting pressure on market sentiment, the International Energy Agency said on Thursday that the growth of global oil demand is losing momentum; It reduced its growth forecasts for 2024, in sharp contrast to the view adopted by the Organization of the Petroleum Exporting Countries (OPEC).
The International Energy Agency’s monthly report said it expects global oil demand to grow by 1.22 million barrels per day this year, down slightly from last month’s estimate, while OPEC on Tuesday stuck to its sharper growth forecast of 2.25 million barrels per day.
Geopolitical tensions
In the Middle East, Hezbollah said on Thursday it fired dozens of rockets at a town in northern Israel in an “initial response” to the killing of 10 civilians in southern Lebanon, the bloodiest day for Lebanese civilians in 4 months of cross-border hostilities.
Meanwhile, on Thursday, Israeli forces said they raided Gaza’s largest functioning hospital, as footage showed chaos, screaming and gunfire in dark corridors filled with dust and smoke.
Analysts said that the risk of a broader conflict in the Middle East may continue to guide crude oil prices.
Vandana Hari, founder of oil market analysis firm Vanda Insights, said: “I expect the recent gains from increased risk premiums in the Middle East to continue, especially heading into the weekend.”
Hari added, “The imminent Israeli attack in Rafah has the potential to unleash a response from the Houthis, who have been somewhat quiet recently in the Red Sea, and other Iranian-backed militias in the region.”
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2024-02-16 07:57:29
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