Last updated: July 12, 2023, 1:25 AM IST
New York, United States of America (USA)
A gas station attendant prepares to fill up a car in Rome, Italy, Jan. 4, 2012. (Reuters File Photo)
Oil prices are up 2% on the declining dollar, demand hopes and supply cuts. Brent is at its highest since April, WTI is at its highest since May
Oil prices rose about 2% on Tuesday, boosted by a declining US dollar, hopes of increased demand in developing countries and supply restrictions from the world’s top oil exporters. Brent futures rose $1.71, or 2.2%, to settle at $79.40 a barrel. US West Texas Intermediate (WTI) crude rose $1.84, or 2.5%, to settle at $74.83.
Brent’s settlement was the highest since April 28 and WTI’s since May 1. Brent was in technical overbought territory for the second time in three days. “The break from the recent high could be seen as a bullish move that could give (Brent) the momentum to break above $80 again,” said Craig Erlam, a senior market analyst at OANDA. “The rally still has momentum at this stage,” he added.
US diesel futures were also on track for their highest close since April 18. The US dollar fell to a two-month low against a basket of other currencies, a day after several Federal Reserve officials signaled that the US central bank was nearing the end of its tightening. bicycle.
A weaker dollar makes crude oil cheaper for holders of other currencies.
Small business confidence in the US climbed to a seven-month high in June as pessimism about the economic outlook eased and sales expectations improved, but the still tight labor market continued to fuel inflation concerns.
Markets awaited US inflation data on Wednesday for guidance on the interest rate outlook. Higher tariffs could slow economic growth and reduce demand for oil.
The International Energy Agency (IEA) said the oil market will remain tight in the second half of 2023, citing strong demand from China and developing countries coupled with recently announced cuts, including by top exporters Saudi Arabia and Russia.
The IEA will release new forecasts this week. The Secretary General of the Organization of the Petroleum Exporting Countries (OPEC) said global energy demand is expected to increase by 23% by the end of 2045.
RECORD WORLD SUPPLY AND OIL DEMAND
The US Energy Information Administration (EIA) predicted that global oil production would increase from 99.9 million barrels per day (bpd) in 2022 to 101.1 million barrels per day in 2023 and 102.6 million barrels per day in 2024, while world demand will rise from 99.4 million barrels per day in 2022 to 101.2 million barrels per day in 2023 and 102.8 million barrels per day in 2024.
That compares to a record 100.5 million barrels per day of global oil production in 2018 and a record 100.8 million barrels per day of global liquid consumption in 2019.
The EIA also predicted that US crude oil production would increase from 11.9 million barrels per day in 2022 to 12.6 million barrels per day in 2023 and 12.9 million barrels per day in 2024, while US fluid consumption would increase from 20.3 million barrels per day in 2022 to 20.4 million barrels per day in 2023 and 20.8 million barrels per day in 2022. 2024.
That compares to a record production of 12.3 million barrels per day of crude oil in the US in 2019 and a record consumption of 20.8 million barrels per day of liquids in 2005.
The market awaits US oil inventory data from the American Petroleum Institute (API), an industry group, on Tuesday and the EIA on Wednesday.
With analysts predicting a 0.5 million barrel increase in US crude inventories in a Reuters poll in the week ending July 7, that inventory data could weigh on oil markets. [EIA/S] [API/S]
If correct, it would be the first crude inventory built in four weeks and compared to an increase of 3.3 million barrels in the same week last year and a five-year (2018-2022) average decline of 6.9 million barrels .
(This story has not been edited by News18 staff and was published from a syndicated news agency feed – Reuters)
