Oil Prices on Pace to First Weekly Gain in 2 Months after IEA’s Positive Forecast

Crude oil prices are on pace to snap its weekly losing streak in two months from a positive momentum forecast for next year by the IEA.

The international benchmark Brent crude gained over 1.2% for the week and the West Texas Intermediate (WTI) rose about 0.70% so far. The last weekly gain was the week ended October 16, 2023 when Brent was at $92.16 a barrel and WTI was at $88.75 a barrel.

The International Energy Agency (IEA) on Thursday raised its global oil demand growth forecast for 2024 due to an improvement in the outlook for the US and lower oil prices. 

The IEA expected global oil consumption to rise by 1.1 million barrels per day (bpd) next year, up 130,000 bpd from the previous forecast. 

Meanwhile, the US dollar also fell to its four-month low on Friday after the Federal Reserve signaled that the rate-hike cycle has ended and now officials are looking into rate cuts next year. A weak greenback makes dollar-denominated oil cheaper for foreign buyers.