Oil pares losses on supply concerns

13 Nov 2024 , 10:04 AM

A day after OPEC reduced its prediction for global oil demand growth in 2024 and 2025, oil prices stayed close to their lowest level in two weeks, despite a little increase on Wednesday due to indications of short-term supply constraints.

U.S. West Texas Intermediate (WTI) crude futures increased 13 cents, or 0.19%, to $68.25, while Brent futures increased 13 cents, or 0.18%, to $72.02 a barrel.

However, market mood was negatively impacted by declining demand forecasts and difficulties in China, a big consumer.

The Organisation of Petroleum Exporting Countries (OPEC) said in its monthly report on Tuesday that due mostly to weakness in China, the world’s largest oil importer, global oil consumption will increase by 1.82 million barrels per day (bpd) in 2024, down from a gain of 1.93 million bpd predicted last month.

Following the news, oil prices fell around 5% over the two sessions prior to settling up 0.1% on Tuesday.

Moreover, OPEC reduced its forecast for global demand growth in 2025 from 1.64 million barrels per day to 1.54 million barrels per day.

With a much reduced perspective, the IEA is scheduled to release its revised projection on Thursday.

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