Crude oil futures saw a modest rise as U.S. benchmark crude traded at approximately $69 per barrel. Despite this increment, the market outlook remains bleak. The International Energy Agency's monthly market report suggests that global oil supply is expected to outstrip demand by 1 million barrels per day next year, driven by robust growth in the U.S.
At the time of reporting, the December delivery price for West Texas Intermediate (WTI, Financial) crude futures on the New York Mercantile Exchange increased by $0.49, or 0.7%, to $68.92 per barrel. This marks a decline of over 3% for the year to date. Meanwhile, January Brent crude futures, the global benchmark traded on the European Intercontinental Exchange, rose by $0.50, or 0.7%, to $72.78 per barrel, having fallen more than 5% since the beginning of the year.
Even though oil prices edged higher, the weak outlook for global demand led UBS to revise its Brent crude price forecast from $87 to $80 per barrel. This adjustment follows the Organization of the Petroleum Exporting Countries' (OPEC) decision on Tuesday to lower its global demand growth forecast for the fourth consecutive month.
The U.S. dollar index has surged since Donald Trump won the presidential election, leading to approximately a 4% drop in WTI crude and a 3.5% decline in Brent crude. A stronger dollar can curb oil demand from buyers holding other currencies.
