Energy Information Administration (EIA) lowered its 2024 price forecast for Brent crude by $10 a barrel. The central bank is widely expected to keep rates on hold. Investors are now awaiting the outcome of Wednesday's Federal Reserve meeting. OPEC+ agreed to limit supplies by 2.2 million barrels per day in the first quarter. Weak demand and concerns that the OPEC+ deal to curb supplies will not do enough to balance the market weighed on prices, he added. "Negative sentiment towards the oil complex is still overpowering at the moment," Kpler analyst Matt Smith said. OPEC and the IEA both update their forecasts this week. Global oil demand growth is expected to slow in 2024 with OPEC and the International Energy Agency split on the extent. Higher rates for longer could slow economic growth and speaks to a softening oil demand picture, said John Kilduff, partner with Again Capital LLC. In the U.S., the consumer price index unexpectedly rose in November, further bolstering the view the Federal Reserve was unlikely to cut interest rates early next year.
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