Oil prices have declined, heading for a weekly loss, as concerns over potential oversupply and a stronger U.S. dollar weigh on the market. The International Energy Agency (IEA) has forecasted an oil supply surplus in 2025, anticipating that global oil supply will exceed demand by over 1 million barrels per day, even if OPEC+ maintains its production cuts. This outlook is contributing to bearish sentiment among investors.
Additionally, the U.S. Energy Information Administration (EIA) has slightly raised its forecasts for both U.S. and global oil production for this year, further intensifying oversupply concerns. The recent strength of the U.S. dollar, which has reached its highest level in a year, is also exerting downward pressure on oil prices by making commodities priced in dollars more expensive for holders of other currencies.
Market participants are closely monitoring these developments, as the interplay between supply forecasts and currency fluctuations continues to influence oil price dynamics.
