Oil prices fell as the International Energy Agency (IEA) reported a rise in global oil production, alleviating market concerns over supply constraints.
The international oil benchmark of Brent crude fell 1.2% to $71.33 per barrel at 10.25 a.m. local time (0725 GMT), down from the previous session’s close of $72.22.
The US benchmark West Texas Intermediate also decreased by 1.3% to $67.50 per barrel, compared to $68.39 at the prior session’s close.
In its Oil Market Report on Thursday, the IEA noted that OPEC’s crude oil production rose to 26.97 million barrels per day (bpd) in October, up by 210,000 bpd from the previous month.
The IEA also projected a potential rise in global oversupply this year, supporting the downward movement of prices.
The IEA estimates global oil output growth to average 640,000 barrels per day in 2024, reaching a record high of 102.91 million bpd. Global growth for next year is forecast to reach around 2.05 million bpd to 104.96 million bpd.
In addition, the data of the US Energy Information Administration (EIA) in its ‘November 2024 Short-Term Energy Outlook Report’ indicates that the average daily crude oil production in the world’s most oil-consuming country will increase also suppressed prices.
The EIA revised its forecast for crude oil prices by $2 per barrel through the end of next year due to the expectations of a higher global oil demand growth in 2025.
Crude oil production in the US is expected to average 13.23 million bpd in 2024, up from 12.93 million bpd last year. The figure is around 300,000 bpd less than the previous month’s forecast.
