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Oil prices poised for 4% weekly gain
IEA projects supply deficit for 2024
Oil prices set for a 4% increase this week on IEA's higher 2024 demand forecast and unexpected US stockpile decline.
IEA ups 2024 oil demand estimate by 110,000 bpd due to Red Sea shipping disruptions, foreseeing slight supply deficit this year.
Gold prices stabilized amid fears of Fed signaling prolonged higher interest rates on stronger-than-expected inflation data.
On the Market Watch:
In currencies
The dollar remained close to one-week highs following the release of hotter-than-expected inflation data, with the US Consumer Price Index (CPI) being followed by a subsequent increase in the Producer Price Index (PPI).
In commodities
Oil prices were poised to register an approximately 4% increase for the week. This rise was supported by the International Energy Agency's upward revision of its 2024 oil demand projections and an unexpected decrease in U.S. stockpiles.
The International Energy Agency (IEA) increased its forecast for 2024 oil demand for the fourth time since November on the back of disruptions in Red Sea shipping caused by Houthi attacks.
The IEA's latest report indicates that world oil demand is expected to increase by 1.3 million barrels per day (bpd) in 2024, which is up by 110,000 bpd compared to the previous month's estimate. Additionally, the IEA projected a slight supply deficit for this year following the extension of cuts by OPEC+ members, a shift from the previous surplus forecast.
Meanwhile, Gold prices remained relatively stable in Asian trading on Friday, as the release of inflation data exceeding expectations heightened concerns that the Federal Reserve may indicate a prolonged period of higher interest rates during an upcoming meeting.
Spot prices hovered near $2,168 bouncing off lows seen earlier in the week near $2,150. With both consumer and producer inflation indicators have consistently surpassed expectations for the third consecutive month.
