The Energy Information Administration (EIA) of the United States has reported on the short-term energy trends for February, stating that it has revised down the forecast for oil production growth in the country in 2024, helping alleviate concerns about excess supply.

The attacks by the Houthi rebel group, backed by Iran, in the Red Sea have increased sea freight rates, leading to a slight increase in oil demand as it is a crucial raw material for the production of other consumer goods.

The rebound in US government bond yields overnight has stimulated profit-taking in the US dollar, especially after the announcement of NFP, leading the Fed to believe that the economy is in good shape and giving it more room to keep interest rates higher for longer. Investors themselves have to lower their expectations for monetary policy easing in 2024.