Crude oil prices continued their downward trend on Friday for the second consecutive day, influenced by the International Energy Agency’s (IEA) revised demand forecast and concerns about a significant future supply glut.
As of 0600 GMT, the global crude benchmark had decreased by 0.46% or 37 cents, trading at $82.38 per barrel. Meanwhile, the U.S. West Texas Intermediate (WTI) saw a drop of 0.59% or 46 cents, trading at $78.16 per barrel.
On India’s Multi Commodity Exchange (MCX), crude futures fell by 0.63%, trading at ₹6,509 per 10 grams as of 11:40 am.
IEA’s Projections
The IEA has revised its demand forecast for 2024, lowering it by approximately 100,000 barrels per day (bpd) to 960,000 bpd. The agency attributed this reduction to sluggish consumption trends in developed economies.
This adjustment marks the second consecutive monthly revision in the IEA’s demand forecast. Last month, the Paris-based intergovernmental organization reduced its 2024 demand growth forecast to 1.1 million bpd, a decrease of 140,000 bpd from its previous projection.
The IEA’s monthly report has garnered significant attention due to its projection of a massive supply glut by 2030. The agency forecasts that global supply will surge to 114 million bpd by that year, while demand is expected to be around 8 million bpd.
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