Investing.com -- Oil prices settled higher Thursday, to remain on track to notch a weekly gain as a weaker dollar helped boost sentiment following the International Energy Agency's monthly outlook forecasting weaker global demand for crude this year.
At 14:30 ET the {{8849|West Texas Intermediate crude roe fell by 1.8% to $78.03 per barrel and Brent oil futures expiring in April climbed by 1.5% to $82.86 a barrel, while
Dollar takes dive as weaker U.S. retail sales puts economic growth in spotlight
The dollar slumped following data showing retail sales slipped by 0.8% last month, a steeper decline than the 0.2% fall economists had expected, pointing to signs of weakness in the U.S. consumer, which makes up the bulk of economic growth.
A weaker dollar makes oil cheaper for the foreign buyers, potentially boosting demand just as the demand outlook took a knock.
Goldman Sachs said in now expects first-quarter U.S. economic growth, or gross domestic product, at 2.5%, down from a a prior estimate 2.9%.
In its latest monthly report, the International Energy Agency said that global oil demand was showing signs of losing momentum, leading the group to lower its 2024 growth forecast to 1.22 million barrels per day.
On the supply side, meanwhile, concern about non-OPEC oil production remained front and center after U.S. oil inventories grew by a staggering 12 million barrels in the week to Feb. 9, the Energy Information Administration reported Wednesday, following record-high U.S. production.
Middle East geopolitical tensions continue to escalate
Middle East tensions continued to escalate as Israel stepped up its assault in Rafa, southern city of Gaza, while Hezbollah fired rockets at a northern Israeli town in response to an attack earlier this week.
The step-up in military action in Rafa comes as international pressure continues to mount on Israel, with the Canada, New Zealand and Australia calling for an immediate humanitarian ceasefire in Gaza.
(Ambar Warrick contributed to this report.)