Brent crude hovers around $74 per barrel on Friday, on track for its most significant weekly drop in over a month, driven by worries about demand and an impending surplus.The International Energy Agency (IEA) recently revised its demand projections downward, indicating a possible global oversupply, while OPEC has also reduced its forecasts for the third month in a row, primarily due to diminished demand from China.
Furthermore, a housing policy update from China on Thursday did not meet expectations, heightening concerns about demand from the world’s largest oil importer.
At the same time, investors were evaluating supply risks in the Middle East, as the Israeli military reported significant developments during recent combat operations, which raised concerns about potential escalating tensions in the region.Although Israel indicated it would refrain from targeting Iran’s oil facilities, risks persist amid increasing airstrikes. Additionally, oil prices received some support from an unexpected decrease in U.S. oil inventories.More By This Author:US30 Index Reaches A Record High S&P 500 Hits New Record High Gold Fluctuates Ahead Of US PCE Reading
