Precise Investors

Alternative Investments

Oil rises on upbeat demand outlook

Oil prices rise

Brent crude futures added 11 cents, or 0.1%, to $82.04 a barrel, while U.S. WTI crude futures added 18 cents, or 0.2%, to settle at $78.10

Oil prices rose on Wednesday on upbeat global demand views from the U.S. Energy Information Administration (EIA) and OPEC.

Brent crude futures added 11 cents, or 0.1%, to $82.04 a barrel at 0016 GMT, while U.S. West Texas Intermediate (WTI) crude futures added 18 cents, or 0.2%, to settle at $78.10.

The EIA raised its 2024 world oil demand growth forecast to 1.10 million barrels per day (bpd) from an earlier estimate of 900,000 barrels per day, while the Organization of the Petroleum Exporting Countries (OPEC) maintained its 2024 forecast for relatively strong growth in global oil demand, citing expectations for travel and tourism in the second half.

Prices had eased more than 2% last week after OPEC and its allies said they would phase out output cuts starting October.

Despite announcing last week that it will start to phase out some of the voluntary cuts later this year, its forecasts suggest it should be easily accepted by the market, analysts at ANZ said in a note to client, adding that demand for oil is likely to be driven by China and other emerging economies.

U.S. crude oil stocks dropped by 2.428 million barrels in the week ended June 7, as per market sources citing American Petroleum Institute (API) figures. Inventories were expected to have dropped by slightly more than one million barrels last week, a preliminary Reuters poll showed.

Data from the EIA, the U.S. government’s statistics arm, is expected later on Wednesday.

Investors also looked forward to the Consumer Price Index (CPI) report, which will be released before the bell on Wednesday, and the U.S. central bank’s policy announcement, due later the same day.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Precise Investors. The information provided on Precise Investors is intended for informational purposes only. Precise Investors is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

Leave a Reply