Oil prices ease on fears of higher output, sluggish demand

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Key Points

(Reuters) -Oil prices slipped in early trade on Thursday, reversing most of the previous sessions gains, weighed down by worries of higher global production amid slow demand growth, with a firmer dollar exacerbating the declines...

Oil is tackling the (earlier) weaker demand forecast narrative by OPEC, who deferred rolling back additional production for yet another month, fearing the adverse effect on prices, said Phillip Novas senior market analyst Priyanka Sachdeva in an email...

On Tuesday, the Organization of the Petroleum Exporting Countries cut its global oil demand growth forecast to 1.82 million bpd in 2024, down from 1.93 million bpd forecast last month, on weak demand in China, India and other regions, sending oil prices to their lowest in nearly two weeks...

Meanwhile, the U.S. Energy Information Administration has slightly raised its expectation of U.S. oil output to an average 13.23 million barrels per day this year, or 300,000 bpd higher than last years record 12.93 million bpd, and up from 13.22 million bpd forecast earlier...

The EIAs oil demand growth forecasts are weaker than OPECs, at about 1 million bpd in 2024, although that is up from its prior forecast of about 900,000 bpd...

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