Oil slipped by 1% on Friday as IEA’s weak demand projections countered the support of the geopolitical disruptions and the positive outlook that Fed will likely cut interest rate early.

Brent crude dipped 1% at $82.04 per barrel, while US WTI dipped 0.7% to $77.52 per barrel.

IEA stated on Thursday that oil demand was slowing down, thus it revised down its growth estimate for 2024. In opposition to OPEC’s outlook.

A greater-than-expected decline in U.S. retail sales on Thursday raised hopes that Federal Reserve will soon begin reducing interest rates, which might be good for the market for oil. As a result, both contracts increased by more than 1%.

The outcome of U.S. interest rates should also be influenced by a producer inflation report that is anticipated later on Friday.

In the meantime, tensions in the Middle East continue, and prices are supported by the increased possibility of a wider conflict in the region.