NY Fed: Oil prices fell slightly due to an increase in anticipated supply

"The perceived loosening in supply more than offset the improvement in global demand expectations, causing oil prices to decline this past week," the Federal Reserve Bank of New York said in its latest 'Oil Price Dynamics' report.

Key highlights

"In 2018:Q3, increasing demand expectations and broadly unchanged supply led to rising oil prices."

"Developments in global demand expectations since 2017:Q3 have reversed the largely supply-induced weakness in oil prices throughout the first half of 2017."

"Overall, since the end of 2014:Q2, both lower global demand expectations and looser supply have held oil prices down, though this trend seems to have reversed in 2016:Q2 and 2016:Q4, and notably since 2017:Q3."