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.
![IEA predicts slower demand growth](https://analyzingmarket.com/wp-content/uploads/2024/02/IEA-e1708208392333.jpg)
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.
![OPEC expects a tighter market](https://analyzingmarket.com/wp-content/uploads/2024/02/OPEC-e1708208511454.jpg)
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.