Energy
Thursday, February 15th, 2024 4:23 pm EDT
Key Points
- Crude oil futures experienced a decline on Thursday due to a weak global demand growth forecast for 2024.
- The International Energy Agency (IEA) predicts a significant slowdown in crude oil demand growth, with an expected increase of 1.2 million barrels per day compared to the 2.3 million bpd growth recorded in 2023.
- Despite differing views between the IEA and OPEC regarding the oil market outlook, geopolitical tensions in the Middle East, including Israel’s retaliation against Lebanon and stalled ceasefire talks in Cairo concerning Gaza, add additional complexity to the situation.
The article highlights a decline in crude oil futures on Thursday due to a subdued global demand growth forecast for 2024. The West Texas Intermediate contract for March experienced a decrease of 50 cents, reaching $76.14 per barrel, while the Brent contract for April traded at $81.12 per barrel, marking a decline of 48 cents. This comes after a more than 1% decrease in futures on Wednesday following a significant surge in U.S. commercial crude stockpiles. Despite these fluctuations, both WTI and Brent have remained relatively stable over the past week. The International Energy Agency (IEA), based in Paris, anticipates a notable slowdown in crude oil demand growth, projecting an increase of 1.2 million barrels per day for 2024, compared to the 2.3 million bpd growth recorded in 2023. The IEA attributes this deceleration to the culmination of the post-pandemic growth phase in global oil demand. Conversely, supply is expected to surpass demand, with a projected growth of 1.7 million bpd, driven primarily by increased production in the U.S., Brazil, Canada, and Guyana. Despite this surplus, the IEA suggests it may help mitigate market volatility, particularly amidst heightened geopolitical risks and low global oil inventories. However, OPEC offers a different perspective, forecasting a tighter oil market for 2024, with demand outpacing production growth outside the cartel. Analysts, such as Phil Flynn from the Price Futures Group, note the ongoing discord between OPEC and the IEA, reflecting divergent views on global energy markets. Additionally, the article briefly mentions geopolitical tensions in the Middle East, citing Israel’s bombing of Lebanon in retaliation for rocket attacks, along with stalled ceasefire talks in Cairo aimed at addressing the situation in Gaza.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/15/-crude-oil-prices-today.html
