Investing.com– Oil prices edged lower in Asian trading on Friday after data showed a larger-than-expected rise in U.S. inventories, with prices poised for a weekly loss amid growing concerns over the weak demand.
Prices were dented by a reduction in OPEC’s demand outlook this week, while stimulus measures from top importer China were largely disappointing. The strength of the dollar also weighed on oil prices.
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Expiring January oils were down 0.4% at $72.30 a barrel, while oils were down 0.4% at $68.26 a barrel as of 8:12 p.m. ET (01:12 GMT).
Oil heads for weekly decline
The and crude oil and liquid crude oil () fell more than 2% each this week.
The losses were initially triggered by China’s lackluster stimulus measures, particularly because Beijing refused to take more targeted fiscal measures to support private spending and the real estate market.
The Organization of the Petroleum Exporting Countries cut its 2024 demand outlook for the fourth straight month, citing concerns over China.
Sentiment towards China has also been dented by the prospect of a new trade war with the United States, as Donald Trump won the 2024 presidential election. Trump has promised to impose high customs duties to China.
US inventories increase last week, but product inventories decrease.
Government data showed Thursday that U.S. oil inventories rose by nearly 2.1 million barrels (mb) in the week through Nov. 8, more than expectations for a 0.4 million increase. mb and a second consecutive week of exceptional increase.
The figure reinforced concerns about a U.S. supply glut, especially as production remained near record levels of more than 13 million barrels per day. Production is also expected to increase under a Trump presidency.
But massive declines in distillate and gasoline inventories showed demand for the world’s largest fuel consumer remains robust, although that trend is also expected to change with the upcoming winter season.
IEA revises upwards its demand outlook for 2024 and warns of a supply glut in 2025
The International Energy Agency slightly raised its forecast for demand growth in 2024 to 920,000 bpd, due to stronger diesel demand in some parts of the world.
The agency left its 2025 demand outlook unchanged, but warned that due to robust production, oil supply will exceed demand in 2025, even if OPEC maintains its ongoing supply cuts .
The IEA forecast comes after OPEC lowered its annual demand outlook earlier this week.
