Oil Prices Dip Slightly as Supply Surplus Forecast Tempers Demand Optimism

Forecasts of increased non-OPEC+ production in 2025 offset hopes for higher demand driven by Chinese stimulus and potential U.S. interest rate cuts.

The International Energy Agency (IEA) projects non-OPEC+ nations will boost oil supply by 1.5 million barrels per day in 2025, outpacing demand growth of 1.1 million barrels per day.
China's crude imports rose annually for the first time in seven months in November, driven by lower prices and stockpiling, with expectations of sustained high imports into early 2025.
OPEC revised its 2025 demand growth forecast downward for the fifth consecutive month, citing weak demand and rising inventories in major markets like the U.S.
Investors anticipate the U.S. Federal Reserve will cut interest rates next week, with further reductions likely in 2025, potentially boosting economic growth and energy demand.
European Union sanctions targeting Russia's oil exports and U.S. discussions on tightening measures are raising concerns about supply disruptions, though global demand remains tempered.