DTN Oil Update
Oil Slips After IEA, OPEC Cut Demand Forecasts
VIENNA (DTN) -- Oil futures prices softened Tuesday morning on demand concerns after the IEA slashed its 2025 global demand growth forecast by 300,000 barrels per day (bpd) to a mere 730,000 bpd. The agency cited "escalating trade tensions" having "negatively impacted the economic outlook" as the reason for the sharp downward revision.
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OPEC's oil market report for April released Monday lowered global demand growth expectations for this and next year by 150,000 bpd each to 1.3 million bpd and 1.28 million bpd, respectively.
The front-month contracts of NYMEX-traded WTI and ICE Brent fell by $0.23 to $61.30 barrel (bbl) and $64.65, respectively.
May RBOB gasoline futures softened by $0.0010 to $2.0212 gallon, while the front-month ULSD futures contract rose by $0.0009 to $2.0926 gallon.
The U.S. Dollar Index gained 0.003 points to 99.400.
Given the robust growth in non-OPEC oil production and the anticipated sluggish demand growth, questions remain around the de facto production increase from OPEC+ expected for May. On paper, production targets will be raised by 411,000 bpd.
The IEA and OPEC joined the EIA in highlighting the large degree of uncertainty in their forecasts given the unclear outcome of trade negotiations.