Oil prices dropped on Friday after hitting a high of $85 per barrel on Thursday, their peak since November.
Yet, the week anticipated a close with more than a 3% gain. This rise was driven by heightened demand from U.S. refineries concluding their scheduled maintenance.
Brent crude futures saw a slight decrease of 8 cents, or 0.09%, closing at $85.34 per barrel.
Similarly, West Texas Intermediate (WTI) experienced a dip of 22 cents, or 0.27%, ending at $81.04.
Phil Flynn, an analyst at Price Futures Group, highlighted tightening motor fuel supplies, indicating potential price increases.
Flynn pointed out concerns regarding the U.S. Federal Reserve‘s potential interest rate cuts amidst inflation remaining above the central bank’s 2% goal.
Such cuts usually boost demand in the U.S., connecting the dots between interest rates, inflation, and oil demand.
Yesterday, oil prices soared to their highest in four months, driven by the International Energy Agency’s (IEA) updated forecasts.
These projections show increased global demand and a reduction in supply estimates, highlighting the oil market’s shifting dynamics.
The IEA’s recent report brings attention to an anticipated rise in global oil demand and a slight decrease in supply projections.
The adjustment considers reduced output from OPEC+ nations, highlighting the delicate balance between global oil supply and demand.