Oil prices slide 1% to 11-week low on weaker IEA 2024 demand forecast
Crude prices slid about 1% to an 11-week low on Wednesday after data from the International Energy Agency (IEA) showed oil demand in developed countries likely would flag this year.
Brent futures fell 62 cents, or 0.8%, to $81.76 a barrel by 10:59 a.m. EDT (1459 GMT), while U.S. West Texas Intermediate (WTI) crude fell 60 cents, or 0.8%, to $77.42. That pushed both crude benchmarks into technically oversold territory and put both on track for their lowest closes since Feb. 23.
The IEA trimmed its forecast for 2024 oil demand growth by 140,000 barrels per day (bpd) to 1.1 million bpd, largely citing weak demand in Organization for Economic Co-operation and Development (OECD) nations. OECD is a group of mostly wealthy countries.
Oil demand in those countries contracted in the first quarter of this year, the IEA added.
That futures price decline came despite a bigger-than-expected withdrawal of crude from U.S. storage last week and U.S. inflation data that supported analysts' expectations for a couple of U.S. Federal Reserve (Fed) interest rate cuts later this year.
U.S. consumer prices increased less than expected in April, suggesting inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations that the Fed will cut interest rates in September.
Those expectations were further bolstered by other U.S. data showing retail sales were unexpectedly flat last month as inflation-weary consumers cut back spending at online retailers and auto dealerships.
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