Oil fell after IEA indicated a slowdown in demand growth

Oil prices fell slightly on Thursday after the International Energy Agency expected a slowdown in growth in demand this year and data showed that US crude inventories increased more than expected.

By 1324 GMT, Brent crude futures fell 17 cents, equivalent to 0.2%, to $81.43 per barrel. US West Texas Intermediate crude futures also fell 16 cents, or 0.2%, to $76.48 per barrel.

According to Reuters, the International Energy Agency said in its monthly report on the oil market on Thursday that global demand is losing momentum. The agency reduced its demand growth forecast in 2024 to 1.22 million barrels per day from 1.24 million barrels.

On the supply side, the IEA expected supply to grow by 1.7 million barrels per day this year, compared to previous expectations of 1.5 million barrels per day.

The two benchmarks lost more than a dollar per barrel on Wednesday due to the rise in US crude inventories, with refining falling to its lowest levels since December 2022.

The Energy Information Administration said that US crude inventories jumped by 12 million barrels to 439.5 million barrels in the week ending February 9, far exceeding analysts’ expectations in a Reuters poll of an increase of 2.6 million barrels.

However, EIA data showed that gasoline and distillate inventories fell more than expected. Gasoline stocks fell by 3.7 million barrels to 247.3 million barrels, compared to expectations for a decrease of 1.2 million barrels.

Distillate stocks fell by 1.9 million barrels to 125.7 million barrels, compared to expectations for a decrease of 1.6 million barrels.

Official data showed that Britain entered a state of recession in the second half of 2023 after the GDP contracted by 0.3% in the last quarter of the year, in addition to a contraction of 0.1% in the third quarter.

Japan also entered a state of recession at the end of last year, contrary to expectations, giving up its position as the third largest economy in the world to Germany.