On Thursday morning, oil prices fell, reversing much of the gains made in the previous trading day due to concerns about increased global output caused by a strong dollar and slowing demand growth.

Phillip nova investment analyst Danish Lim stated: "Regardless of the short term or future outlook, the main driver of oil prices will be the movement of the dollar." He noted that recent supply and demand changes have put pressure on oil prices. The recent rebound of the dollar is a key downward pressure, and it is expected that the oil market will remain volatile, although there is a put inclination.

The dollar soared to a one-year high, continuing the gains from Wednesday, after the USA released October inflation data that met expectations, which in turn triggered concerns about slowing demand growth.

OANDA senior market analyst Kelvin Wong stated that the market is a "composite of demand weakness factors", with the latest concern being the rebound of the u.s. 10-year treasury notes yield. He added: "This increases the likelihood of the Federal Reserve entering a 'shallow rate cut' cycle in 2025 and reduces the liquidity that stimulates increased oil demand."

In terms of supply, the u.s. Energy Information Agency has slightly raised its forecast for U.S. oil production this year to an average of 13.23 million barrels per day, 0.3 million barrels higher than last year's record of 12.93 million barrels per day, and above the previous forecast of 13.22 million barrels per day.

Additionally, institutions have raised the global oil production forecast for 2024 from the previous 0.1025 billion barrels per day to 0.1026 billion barrels per day. In 2025, global production is expected to increase from the previous 0.1045 billion barrels per day to 0.1047 billion barrels per day.