FX.co ★ Oil prices continue to fall

Crude oil prices continue to dip, as dollar strengthens and China's economic recovery disappoints. However, even with the decline, prices remain much higher than they have been for several months.

The International Energy Agency (IEA) said in its latest monthly report that prices will likely rise higher this year, but demand will decline sharply in 2024 due to economic barriers. The increase in interest rates and the tightening of bank credit complicated the global economic outlook, squeezing businesses that already struggle with sluggish production and trade.

The IEA also acknowledged a reduction in supplies due to OPEC cuts, which may lead to a decrease in global stocks of about 2.2 million barrels per day. That will likely lead to even higher price growth.

Bloomberg said the growing anticipation of a soft landing in the US will provide additional support to oil prices.