EBC Markets Briefing | Oil prices ease as EIA raised output forecast

Oil prices dropped slightly early on Thursday on expectations of higher global production amid forecasts for weak demand growth, while a firmer dollar also took a toll on prices.

The EIA has slightly raised its expectation of US oil output to an average 13.23 million bpd from 13.22 million bpd. It also raised its global oil output forecast for 2024 to 102.6 million bpd from 102.5 million bpd.

The upward revisions came after OPEC cut its global oil demand growth forecast to 1.82 million bpd in 2024 from 1.93 million bpd on weak demand in Asia.

Russian President Putin and Saudi Crown Prince Mohammed bin Salman have underscored the importance of continuing a "close coordination" within OPEC+ during a phone call on Wednesday.

Israeli military strikes killed at least 22 Palestinians across the Gaza Strip, as Israeli forces deepened their incursion into Beit Hanoun town in the north, forcing most remaining residents to leave.

The greenback rose to a near seven-week high as progress toward low inflation has slowed in recent months. US CPI increased as expected in October amid higher costs for shelter such as rents.

Brent crude looks set to retest the solid support around $70. If the level still holds, the triple bottom chart will bolster the case of a rally above 50 SMA.

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