Oil prices saw minimal movement on Thursday, balancing concerns over ample supply with optimism for a potential Federal Reserve rate cut. Brent crude settled at $73.41, down $0.11 or 0.15%, while U.S. West Texas Intermediate (WTI) closed at $70.02, declining $0.27 or 0.38%. The International Energy Agency (IEA) revised its 2024 demand outlook slightly upward but still projected comfortable supply, following OPEC’s fifth consecutive cut to its demand growth forecast. Despite this, global oil inventories dropped by 39.3 million barrels in October, driven by low refinery activity and rising demand, according to the IEA.
In the U.S., inflation rose modestly in November, aligning with expectations and reinforcing the likelihood of another Fed rate cut, which could boost economic activity and energy demand. Meanwhile, U.S. gasoline and distillate inventories increased more than anticipated, tempering price support. On the global front, Chinese crude imports grew annually for the first time in seven months, up over 14% year-over-year in November, reflecting some demand resilience. In the Middle East, Iran agreed to stricter U.N. nuclear monitoring at its Fordow facility, adding a geopolitical factor to the market outlook.