Oil little changed as IEA surplus forecast offsets rate cut optimism

LONDON, Dec 12 (Reuters): Oil prices were little changed on Thursday as a forecast for ample supply in the oil market offset optimism stemming from rising expectations of a U.S. interest rate cut.

Brent crude futures were down 8 cents at $73.44 a barrel at 1303 GMT. U.S. West Texas Intermediate crude futures were up 3 cents to $70.32. Both benchmarks rose by more than $1 on Wednesday.

The International Energy Agency said it expected the oil market to be comfortably supplied next year, even as it revised its demand outlook for next year up slightly. OPEC cut its demand growth forecast for 2024 for the fifth straight month on Wednesday and by the largest amount yet.

"They still call for a massively oversupplied market, but this has declined slightly with their demand revision," said Giovanni Staunovo, commodity analyst at UBS.