Oil prices settled nearly unchanged on Thursday, despite a forecast of ample supply in the market, due to rising expectations of a Federal Reserve interest rate cut. The Brent crude futures contract settled at $73.41 a barrel, down 11 cents from the previous close, while the US West Texas Intermediate crude futures contract settled at $70.02, down 27 cents.
The International Energy Agency made a slight upward revision to its demand outlook for next year, but still expected the oil market to be comfortably supplied. The IEA reported a 39.3 million barrel fall in global oil inventories in October, due to low refinery activity and a rise in global oil demand.
In the US, inflation rose slightly in November, in line with economists’ expectations, which led to optimism about economic growth and energy demand. US gasoline and distillate inventories rose by more than expected last week, while global oil demand has remained resilient despite rising at a slower rate than expected this month.
Chinese crude imports grew at an annual rate for the first time in seven months in November, up over 14% from the previous year. In the Middle East, Iran agreed to stricter monitoring by the UN nuclear watchdog at its Fordow site, which has the potential to impact oil prices.