Oil prices rose on Wednesday, supported by upbeat demand forecasts from the U.S. Energy Information Administration (EIA) and OPEC, and data showing U.S. crude inventories fell more than expected last week.
- EIA raised its forecast for global oil demand growth in 2024 to 1.10 million barrels per day (bpd) from its previous estimate of 900,000 bpd.
- OPEC maintained its 2024 outlook for relatively strong growth in global oil demand, citing expectations for robust travel and tourism in the second half of the year.
- Brent futures rose 50 cents, or 0.6%, to $82.42 a barrel, while U.S. West Texas Intermediate (WTI) futures rose 62 cents, or 0.8%, to $78.52.
Other factors supporting oil prices:
- The ongoing war in Ukraine has disrupted supplies of Russian oil, which has helped to keep prices high.
- The Federal Reserve’s interest rate hikes have raised concerns about a potential recession, but demand for oil has so far remained strong.
- Investors are closely watching the situation in China, the world’s largest oil importer, as it emerges from COVID-19 lockdowns.
Overall, the outlook for oil prices is mixed. The EIA and OPEC’s upbeat demand forecasts are positive, but the risk of a recession and the ongoing war in Ukraine could weigh on prices.
