WASHINGTON (dpa-AFX) - Despite a report from the International Agency (IEA) that said oil supply is likely to rise significantly this year, oil futures ended notably higher on Thursday as the dollar weakened with weak economic data raising hopes of a rate cut by the Federal Reserve in June.
The dollar index dropped to 104.18 after data from the Commerce Department showed retail sales in the U.S. slid in the month of January.
West Texas Intermediate Crude oil futures for March ended higher by $1.39 or about 1.8% at $78.03 a barrel.
Brent crude futures settled at $83.86 a barrel, gaining $1.26 or 1.54%.
The IEA said in its monthly report that global oil demand is losing momentum and left its forecast for oil demand in 2024 steady at 1.2 million barrels per day over last year. The IEA said supply is likely to outpace slowing demand as fresh production from the U.S., Brazil, Guyana and Canada will add 1.6 million barrels per day of non-OPEC+ supply.
The Commerce Department report said retail sales slid by 0.8% in January after climbing by a downwardly revised 0.4% in December. Economists had expected retail sales to edge down by 0.1% compared to the 0.6% increase originally reported for the previous month.
A report from the Federal Reserve showed industrial production in the U.S. unexpectedly edged slightly lower in the month of January.
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