2024-02-16T04:37:57+00:00
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/ Oil prices stabilized on Friday due to the International Energy Agency’s expectations of a slowdown in demand, after gains in the previous session thanks to weak US retail sales data that raised optimism that the Federal Reserve may cut interest rates sooner than expected.
Brent crude futures were down 9 cents, or 0.1 percent, at $82.77 a barrel by 0342 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 4 cents at $78.07 a barrel.
Both benchmarks rose more than 1 percent on Thursday as a bigger-than-expected drop in U.S. retail sales boosted hopes that the Federal Reserve will soon start cutting interest rates, which could be positive for oil demand.
The US Commerce Department report showed retail sales fell 0.8% in January, the largest decline since February 2023. Economists polled by Reuters had expected retail sales to fall 0.1%.
Weighing on market sentiment, the Paris-based International Energy Agency, the industrialized world’s energy watchdog, said on Thursday that global oil demand growth was losing momentum and cut its growth forecast for 2024, in sharp contrast to the view held by the Organization of the Petroleum Exporting Countries (OPEC).
The International Energy Agency said in its monthly report that it expects global oil demand to grow by 1.22 million barrels per day this year, slightly lower than last month’s estimate. OPEC on Tuesday stuck to its more aggressive growth forecast of 2.25 million barrels per day.
In the Middle East, Hezbollah said on Thursday it fired dozens of rockets at a northern Israeli town in a “preliminary response” to the killing of 10 civilians in southern Lebanon, the deadliest day for Lebanese civilians in four months of cross-border hostilities.
Meanwhile, Israeli forces said on Thursday they had raided Gaza’s largest operating hospital, with footage showing chaos, screaming and gunfire in dark corridors filled with dust and smoke.
Analysts said the risk of a wider conflict in the Middle East could continue to drive crude oil prices.