Oil prices are showing negative dynamics, which is due to the latest forecast of the International Energy Agency (IEA), the strengthening of the US currency and the correction of positions by investors ahead of the long weekend in the United States. Meanwhile, further price declines are limited by ongoing geopolitical tensions.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.07% to 104.36.
Yesterday, the IEA revised its forecast for global oil demand growth for 2024, citing the fact that oil demand growth is losing momentum. The agency lowered its demand growth forecast for 2024 to 1.22 million barrels per day from 1.24 million barrels per day. As for supply, the IEA estimates that supply will increase by 1.7 million barrels per day this year, compared with the previous forecast of 1.5 million barrels per day.
Meanwhile, the latest US retail sales data has raised hopes that the Fed will soon begin to ease monetary policy, which may have a positive impact on oil demand.
The situation in the Middle East also remained in focus, with analysts warning that the risk of a wider Middle East conflict could continue to guide crude prices.