Oil prices retreated on Friday as conflicting demand predictions from OPEC and the International Energy Agency caused market uncertainty.
The March contract for West Texas Intermediate declined by 0.81% or 63 cents, settling at $77.40 per barrel. Meanwhile, April Brent futures dropped by 0.91%, or 75 cents, to $82.09 per barrel.
This pullback follows a surge in U.S. crude and the global benchmark on Thursday, disregarding a weak global demand forecast for 2024 by the IEA.
On Thursday, crude prices received a boost after U.S. consumer retail sales in January fell more than expected.
This raised concerns about a slower economy and increased hopes that the Federal Reserve might soon implement interest rate cuts, thereby pressuring the dollar.
The IEA’s forecast on Thursday projected a significant slowdown in global crude oil demand growth for this year, estimating an increase of 1.2 million barrels per day compared to 2.3 million in 2023.
The IEA also predicted that supply would surpass demand, with non-OPEC production rising by 1.7 million.
In contrast, OPEC’s forecast on Tuesday anticipated a much tighter market in 2024, with demand expected to grow by 2.2 million, outpacing production growth outside the cartel, which is projected to total 1.2 million.
