A day after reaching $85 a barrel for the first time since November, oil prices fell on Friday, March 16. However, due to increased demand from US refiners and the International Energy Agency’s (IEA) 2024 oil demand predictions, prices ended the week over 3% higher.
Benchmark Following gains of 4.3% over the preceding two days and a high reached on Thursday, Brent oil was last trading around $85 per barrel. To $81.09, US West Texas Intermediate (WTI) crude fell 17 cents, or 0.21 percent.
Most of the previous month had seen prices stagnate between $80 and $84 per barrel. Concerning domestic pricing, crude oil futures recently finished at a 0.15 percent decrease.
What’s driving crude oil prices?
-Due to Houthi attacks that have hampered shipping in the Red Sea, the IEA revised its forecast for oil consumption in 2024 for the fourth time since November on Thursday.
-According to a Reuters story, US energy companies added the most oil and natural gas rigs this week in a week since September. The number of oil rigs also increased to its highest level in six months, according to energy services company Baker Hughes.
-In the week ending March 15, there were 629 oil and gas rigs, an early indication of future output that increased by seven.
-Despite the US dollar gaining at its quickest rate in eight weeks, this week’s gains have been achieved. For holders of other currencies, crude becomes more expensive due to a rising dollar. Interest rate reductions are viewed as a chance to boost demand in the US.
-In the US, additional data released on Thursday revealed a higher-than-expected increase in producer prices last month, which made some indications of slowing economic activity unlikely to prompt the Federal Reserve to begin lowering interest rates before June.
-According to the Energy Information Administration (EIA), US crude oil stockpiles unexpectedly decreased last week as refineries increased processing, while gasoline inventories plummeted as demand increased.
Roadmap
