Oil ticked down on Friday but was on course to hit more than 3% gain for the week, buoyed by the IEA that rose its oil demand projections and unpredicted drop in US stockpiles.

Brent crude dipped 0.6% to $84.83 per barrel while WTI dipped 0.6% to $80.70 per barrel.

For the majority of the past month, prices had stayed within a narrow range, fluctuating roughly between $80 and $84 per barrel. However, on Thursday, the IEA revised its outlook for 2024 oil demand upwards for the fourth time since November, citing disruptions in Red Sea shipping due to Houthi attacks.

According to its most recent report, the IEA projected that global oil demand would increase by 1.3 million barrels per day in 2024, marking an increase of 110,000 barrels per day from the previous month's estimate. It anticipates a minor supply shortfall this year if OPEC+ members continue to uphold their production cuts, a deviation from its earlier prediction of a surplus.

Despite the U.S. dollar strengthening at its most rapid rate in eight weeks, there have been gains this week. A stronger dollar increases the cost of crude for users of other currencies.