Price action
Brent crude futures fell 25 cents, or 0.3 percent, to $85.17 per barrel by 0533 GMT, after exceeding $85 per barrel yesterday, Thursday, for the first time since November. US West Texas Intermediate crude fell 22 cents, or 0.3 percent, to $81.04.
Yesterday, Thursday, the International Energy Agency raised its forecasts for oil demand in 2024 for the fourth time since November in light of the Houthi attacks that disrupt shipping traffic in the Red Sea.
The agency said in its latest report that global demand for oil will rise by 1.3 million barrels per day in 2024, an increase of 110,000 barrels per day from last month. It expects a slight supply deficit this year after OPEC+ members extended production cuts.
The Energy Information Administration said on Wednesday that US crude oil inventories also fell unexpectedly last week as refineries intensified processing operations, while gasoline inventories declined as demand rose.
On the demand side, the Chinese central bank held interest rates steady, as authorities continued to prioritize currency stability amid uncertainty about when the Federal Reserve is expected to cut interest rates.
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