Oil Prices Dip on Rising Output Expectations and Slower Demand Growth

Oil prices have declined slightly, influenced by forecasts of increased global production and subdued demand growth. The U.S. Energy Information Administration (EIA) has raised its projections for both U.S. and global oil output, anticipating U.S. production to average 13.23 million barrels per day (bpd) in 2024 and global production to reach 102.6 million bpd. Concurrently, the Organization of the Petroleum Exporting Countries (OPEC) has lowered its global demand growth forecasts, citing economic challenges in key markets such as China and India. These factors have contributed to the recent easing of oil prices, as the market adjusts to the prospect of higher supply amid weaker demand growth.