Oil records lowest closing in 2 weeks amid demand concerns

Oil drilling rigs

Oil prices closed lower today, March 12, as data showed an acceleration of annual inflation in the US to 3.2% during February. This raised fears of continued monetary tightening that may limit demand, as agencies issued reports on the oil market.

Brent crude futures for May delivery fell 0.35%, or 29 cents, to close at $81.92 per barrel, the lowest level for the benchmark since Feb. 29 ($81.91).

WTI crude for April delivery lost 0.45%, or 37 cents, to $77.56 per barrel, with US crude recording the lowest settlement since Feb. 23 session ($76.49).

OPEC said in its monthly report that it expects global oil demand to grow by 2.25 million barrels per day in 2024, and 1.85 million barrels in 2025—maintaining the estimates in last month’s report.

The American Petroleum Institute's report on oil inventories is expected later today, and the US Energy Information Administration is scheduled to issue official data on inventories on March 13, amid expectations that crude inventories will rise by 1.1 million barrels.