DTN Oil Update
Oil Prices Dip as IEA Cuts Demand Outlook
SECAUCUS, N.J. (DTN) -- Oil futures dipped on Thursday, Feb. 12, as market participants reacted to a lower demand outlook for 2026 from the International Energy Agency (IEA).
A large weekly rise in crude and gasoline stocks reported by the U.S. Energy Information Administration (EIA) on Wednesday, Feb. 11, also weighed. The downside was limited by concerns over how Iran proceeds with U.S. pressure to dismantle its nuclear program.
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In morning trade, NYMEX WTI crude futures for March delivery fell by $0.37 to $64.26 bbl, while April ICE Brent crude slid by $0.47 to $68.93 bbl.
March RBOB futures contract eased by $0.0255 to $1.9534 gallon. The front-month ULSD contract retreated by $0.0171 to $2.4233 gallon.
The U.S. Dollar Index slipped by 0.016 points to 96.705 against a basket of currencies.
The Paris-based IEA said in its February report that it expects demand to rise by 850,000 bpd this year, a decrease from the 930,000-bpd growth it projected in January. The agency maintained the glut of 3.7 million bbl it has forecast so far for 2026, citing higher crude prices and economic uncertainty.
The Washington-based EIA, meanwhile, reported that U.S. commercial crude oil stocks surged by 8.5 million bbl to 428.8 million during the week to Feb. 6. The build reversed the 3.5 million bbl tumble in crude inventories recorded in the prior week, when production of approximately 2 million bpd was gutted by Winter Storm Fern.
Gasoline balances increased by 1.2 million bbl to 259.1 million, adding to the prior week's rise of 700,000, the EIA said. That marked the 13th straight week of gasoline stock builds in a season where consumption is typically lower versus supply amid winter conditions that reduce driving.
Distillate fuel oil inventories bucked the builds in crude and gasoline, declining by 2.7 million bbl to 124.7 million, after the previous week's increase of 300,000 bbl.