Crude oil prices pulled back from a 3.5-month high as the IEA projected a significant demand slump, even as geopolitical conflicts in the Middle East and Ukraine continue to threaten global supply chains.
IEA forecasted sharp drop in oil demand, causing crude prices to fall back after a rally.
WTI crude oil prices retreated on Friday, falling 2.37% to close at $100 per barrel after the IEA warned of the largest global demand drop since the pandemic. Despite the bearish demand outlook, supply remains constrained by ongoing US-Iran tensions and Houthi attacks on Red Sea energy infrastructure, keeping the market in a state of high volatility.
Prices declined primarily due to an IEA warning that high costs and supply constraints are triggering the largest drop in global oil demand since the pandemic, outweighing immediate supply fears.