WASHINGTON (dpa-AFX) - Oil futures closed lower on Thursday after three successive days of gains, as International Energy Agency's forecast that the oil market will see excess supply next year offset optimism about a Fed interest rate cut and expectations of higher demand from China.
West Texas Intermediate Crude oil futures for January closed down $0.27 or nearly 0.4% at $70.02 a barrel.
Brent crude futures dropped to $73.41 a barrel, losing $0.11.
The IEA expects the oil market to be comfortably supplied next year, even as it revised its demand outlook for next year up slightly.
The agency increased its 2025 global oil demand growth forecast to 1.1 million barrels per day (bpd) from 990,000 bpd last month, 'largely in Asian countries due to the impact of China's recent stimulus measures,' it said in its monthly oil market report.
With regard to supply, the IEA expects non-OPEC+ nations to boost supply by about 1.5 million bpd next year, driven by the United States, Canada, Guyana, Brazil and Argentina - more than the rate of demand growth.
OPEC cut its demand growth forecast for 2024 for the fifth straight month on Wednesday and by the largest amount yet.
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