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Oil dips on oversupply concerns, heads for weekly loss
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Oil dips on oversupply concerns, heads for weekly loss
Nov 15, 2024 12:07 PM

Nov 15 (Reuters) - Oil prices edged down early on Friday

as oversupply concerns and demand worries stemming from a

stronger dollar outweighed a steep draw in U.S. fuel stocks.

Brent crude futures were down 30 cents, or 0.41%, at

$72.26 a barrel by 0105 GMT. U.S. West Texas Intermediate crude

futures were down 25 cents, or 0.36%, at $68.45.

For the week, Brent is set to fall about 2.2% while WTI is

set to decline 2.7%.

U.S. crude inventories last week rose by 2.1 million

barrels, the Energy Information Administration (EIA) said on

Thursday, much more than analysts' expectations for a

750,000-barrel rise.

Meanwhile, gasoline stocks fell by 4.4 million barrels last

week to the lowest since November 2022, the EIA said, compared

with analysts' expectations in a Reuters poll for a

600,000-barrel build. ​Distillate stockpiles, which include

diesel and heating oil, also fell unexpectedly by 1.4 million

barrels, the data showed.

Signs of stronger demand supported oil prices, ANZ analyst

Daniel Hynes said. "However, prices came under pressure after

the market was reminded of the bleak outlook for demand."

The International Energy Agency forecast global oil supply

will exceed demand in 2025 even if cuts remain in place from

OPEC+, which includes the Organization of the Petroleum

Exporting Countries and allies such as Russia, as rising

production from the U.S. and other outside producers outpaces

sluggish demand.

The Paris-based agency raised its 2024 demand growth

forecast by 60,000 barrels per day to 920,000 bpd, and left its

2025 oil demand growth forecast little changed at 990,000 bpd.

OPEC this week cut its forecast for global oil demand growth

for this year and 2025, highlighting weakness in China, India

and other regions, marking the producer group's

fourth-consecutive downward revision to its 2024 outlook.

Also pressuring oil prices, the dollar surged on Thursday to

a one-year high and headed for a fifth-straight daily gain

fuelled by higher yields and Donald Trump's presidential

election victory in the United States.

A stronger greenback makes dollar-denominated oil more

expensive for holders of other currencies, which can reduce

demand.

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