Global oil prices fall amid rising US crude inventories

WEB DESK: Global oil prices dipped slightly early on Friday as worries about an oversupply and demand concerns linked to a stronger US dollar overshadowed a significant drop in US fuel stocks.

By 0105 GMT, Brent crude was down by 30 cents or 0.41 per cent to $72.26 per barrel while US West Texas Intermediate (WTI) crude slipped by 25 cents or 0.36 per cent to $68.45 per barrel.

For the week, Brent was expected to drop around 2.2 per cent and WTI was on track for a 2.7 per cent decline.

According to US Energy Information Administration, crude inventories rose by 2.1 million barrels last week, far exceeding forecasted increase of 750,000 barrels.

The International Energy Agency predicts global oil supply will surpass demand by 2025 even if current OPEC+ production cuts remain in place. Increased output from the US and other producers outside OPEC is expected to outpace slower demand growth.

The IEA raised its 2024 demand growth forecast by 60,000 barrels per day (bpd) to 920,000 bpd but kept its 2025 forecast unchanged at 990,000 bpd.

In contrast, OPEC reduced its global oil demand growth forecast for both this year and 2025 citing weakness in China, India and other regions. This marks OPEC’s fourth consecutive downward revision for 2024.

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