Crude oil futures saw a modest increase on Thursday, but the U.S. benchmark remained below $69 per barrel as concerns grow over a large supply surplus in 2025.
The International Energy Agency (IEA) predicts that global crude oil supplies will exceed demand by more than 1 million barrels per day next year, primarily due to strong production growth in the U.S.
Here are the closing prices for major energy contracts on Thursday:
West Texas Intermediate (WTI): The December contract settled at $68.70 per barrel, up 27 cents, or 0.39%. U.S. crude is down approximately 4% year-to-date.
Brent Crude: The January contract closed at $72.56 per barrel, gaining 28 cents, or 0.39%. Brent is down nearly 6% for the year.
RBOB Gasoline: The December contract ended at $1.9817 per gallon, up 0.84%. Gasoline prices have dropped nearly 6% year-to-date.
Natural Gas: The December contract fell by 6.64%, closing at $2.785 per thousand cubic feet. However, natural gas prices are up about 11% year-to-date.
In related news, UBS downgraded its price forecast for Brent crude, lowering it to $80 per barrel from $87. The revision comes amid signs of weakening demand in China, the world’s largest crude importer.
Earlier this week, OPEC also revised its demand growth forecast for the fourth consecutive month, signaling further concerns about global oil consumption.
Oil prices have fallen by more than 4% since Donald Trump’s election win in 2016, driven by a surge in the value of the U.S. dollar. A stronger dollar can reduce oil demand from buyers using other currencies.
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