Investing.com– Oil prices fell slightly in Asian trade on Friday after data showed a bigger-than-expected build in U.S. inventories, with prices set for a weekly loss amid growing concerns over weak demand.
Prices were rattled by a cut in the OPEC’s demand outlook this week, while stimulus measures from top importer China largely underwhelmed. A strong dollar also weighed on oil prices.
expiring in January fell 0.4% to $72.30 a barrel, while fell 0.4% to $68.26 a barrel by 20:12 ET (01:12 GMT).
Oil heads for weekly decline
and WTI futures were trading down more than 2% each this week.
Losses were initially sparked by middling stimulus measures from China, especially as Beijing declined to dole out more targeted fiscal measures to support private spending and the property market.
The Organization of Petroleum Exporting Countries cut its 2024 demand outlook for a fourth consecutive month, citing concerns over China.
Sentiment towards China was also strained by the prospect of a renewed trade war with the U.S., as Donald Trump won the 2024 presidential election. Trump has vowed to impose steep trade tariffs on the country.
US inventories grow in past week, but product stockpiles fall
Government data showed on Thursday that U.S. grew nearly 2.1 million barrels (mb) in the week to November 8, more than expectations for a 0.4 mb build and a second straight week of outsized build.
The reading pushed up concerns over a U.S. supply glut, especially as production remained close to record highs of over 13 million barrels per day. Production is also expected to increase in a Trump presidency.
But outsized draws in and inventories showed that demand in the world’s largest fuel consumer still remained robust, although this trend is also expected to shift with the upcoming winter season.
IEA raises 2024 demand outlook, warns of 2025 supply glut
The International Energy Agency on Thursday slightly raised its 2024 demand growth forecast to 920,00 bpd, seeing stronger gasoil demand in some parts of the world.
The agency left its 2025 demand outlook unchanged, but warned that robust production will see oil supplies exceed demand in 2025, even if the OPEC left its ongoing supply cuts in place.
The IEA’s forecast comes after the OPEC cut its annual demand outlook earlier this week.