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Oil dips, but posts weekly gain on strong 2024 demand outlook

Oil futures costs settled a little lower on Friday after a study showed weakening U.S. consumer belief, but rates increased 4% for the week as financiers weighed projections for strong need for crude oil and fuel in 2024.

Brent crude futures settled down 13 cents at $82.62. a barrel, while West Texas Intermediate (WTI) U.S. unrefined futures. were down 17 cents at $78.54.

Brent and the U.S. standard gained almost 4% over the week,. highest weekly rise in percentage terms since April.

Both standards slipped after a study revealed U.S. consumer. belief deteriorated in June to a seven-month low.

The information was available in method lower than expected, said Bob Yawger,. director of energy futures at Mizuho. That suggests the average. consumers do not have self-confidence the financial circumstance is. enhancing.

Losses were restricted by projections for strong demand.

The U.S. Energy Information Administration (EIA) updated. its oil need growth estimate for 2024 a little, and the. Company of the Petroleum Exporting Countries (OPEC) stuck. to a projection for reasonably strong growth of 2.2 million. barrels a day (bpd).

The International Energy Company (IEA) meanwhile cut its. need growth forecast to under 1 million bpd.

Nevertheless, all three forecasters forecasted a supply deficit at. least till the start of winter, Commerzbank experts. highlighted.

Likewise this week, the U.S. Federal Reserve kept interest rates. on hold, and financiers think rate cuts are not likely before. December.

In view of the still unsure financial outlook for the. major financial areas, a further rate boost is not to be. anticipated for the time being, said Commerzbank expert Barbara. Lambrecht.

The U.S. active oil rig count, an early indication of future. output, fell by four to 488 this week to its most affordable considering that. January 2022, energy services firm Baker Hughes stated.

In other places, Russia pledged to satisfy its output obligations. under the OPEC+ pact after stating it exceeded its quota in May.

Rates dipped last week after OPEC and its allies said they. would phase out output cuts starting from October.

No matter the number of times it guarantees to make up for poor. compliance at a future date, the marketplace simply sees more oil and. an agreement that may simply possibly decipher, said PVM expert. John Evans.

Market focus is also on Gaza ceasefire talks, which could. reduce issues about potential disturbance to oil supply from. the area.

Money supervisors raised their net long U.S. crude futures and. choices positions in the week to June 11, the U.S. Commodity. Futures Trading Commission

(source: Reuters)