IEA Report Signals Global Oil Supply Adequacy, U.S. Crude Oil Prices Drop

U.S. crude oil futures saw a slight dip on Thursday following the International Energy Agency's announcement that the global oil market is adequately supplied.

Demand growth is slowing while supply is on the rise, particularly from the Americas. Toril Bosoni, head of the IEA's oil markets and industry division, stated to Reuters that the market appears well supplied for the year, depending on future oil demand growth and unforeseen outages. Despite OPEC+ extending supply cuts, Bosoni expects relatively stable markets.

The IEA forecasted supply to hit a record high of 103.8 million barrels per day, largely due to non-OPEC+ producers such as the U.S.

, Brazil, and Guyana. This uptick in supply is forecasted to meet the demand growth. Conversely, U.

S. natural gas futures fell after the Energy Information Administration reported a fifth consecutive below-average draw. With low demand projected based on weather forecasts, inventory surpluses may be seen towards the end of the heating season.

Nymex crude for April delivery dropped by 0.2% to $78.93 per barrel, while May Brent crude stayed steady at $82.

96 per barrel. Goldman Sachs also anticipates Brent oil prices to potentially climb to the upper end of the estimated range of $70-$90 per barrel this summer.