Oil futures saw a slight increase, with U.S. benchmark crude trading around $69 per barrel. However, the market sentiment remains pessimistic. According to the International Energy Agency's monthly report, it is projected that global oil supply will exceed demand by one million barrels per day next year, primarily driven by strong growth in the United States.
West Texas Intermediate (WTI, Financial) crude for December delivery on the New York Mercantile Exchange rose by 27 cents, or 0.39%, closing at $68.70 per barrel. This represents an approximate 4% decline in value since the start of the year. Meanwhile, January Brent crude oil futures on the European Intercontinental Exchange increased by 28 cents, or 0.39%, closing at $72.56 per barrel, marking a roughly 6% decrease year-to-date.
Even with the recent rise in oil prices, UBS has revised its Brent crude forecast down to $80 per barrel, from a previous prediction of $87, due to the weak global demand outlook. The Organization of the Petroleum Exporting Countries (OPEC) cut its global demand growth forecast for the fourth consecutive month.
Since the election of Donald Trump as U.S. President, the dollar index surged, leading to a decline of about 4% in U.S. WTI oil and a 3.5% decrease in Brent crude. A stronger dollar could deter oil demand from buyers using other currencies.
