West Texas Intermediate remains steady with thin trading, possibly due to anticipation of upcoming producer price figures from the US. The WTI crude oil hovers around $78.00 per barrel in European trading on Thursday. Oil traders have absorbed the hawkish stance maintained by the US Federal Reserve, with the Federal Open Market Committee (FOMC) keeping … Read more
The International Energy Agency (IEA) trimmed its forecast for 2024 oil demand growth by 130,000 barrels per day to 1.2 million bpd due to lower than expected consumption in OECD countries and a slump in factory activity.
– West Texas Intermediate (WTI) crude oil prices are fluctuating just above the mid-.00s in Asian trading on a Friday.
– Prices are close to the highest level since November 6, as observed the previous day.
– The US Producer Price Index (PPI) was higher than expected, suggesting the Federal Reserve might maintain high interest rates to combat inflation, potentially reducing economic activity and fuel demand.
– Concerns about a slowdown in China also negatively impact crude oil prices.
– Factors supporting oil prices include a significant drop in US inventories, drone strikes on Russian refineries, and increased energy demand forecasts.
– The US Energy Information Administration reported a decrease of about 1.5 million barrels in US crude stockpiles for the week ending March 8.
– A drone attack attributed to Ukraine caused a fire at Rosneft’s largest refinery in Russia.
– The International Energy Agency has raised its 2024 oil demand growth forecast for the fourth time since November due to supply disruptions from Houthi attacks in the Red Sea.
– OPEC+ members have agreed to extend production cuts of 2.2 million barrels per day through the second quarter, supporting higher crude oil prices.
– Crude oil is on track for strong weekly gains, with market focus shifting to the upcoming FOMC monetary policy meeting.
Producer group OPEC and the International Energy Agency (IEA) have the largest discrepancy in their oil demand growth forecasts in at least 16 years. In February, the IEA predicted a demand increase of 1.22 million barrels per day (bpd) for 2024, while OPEC forecasted a rise of 2.25 million bpd. This difference represents about 1% of world demand. The divergence in forecasts by the IEA, which represents industrialized countries, and OPEC sends mixed signals to traders and investors regarding the oil market’s strength in 2024 and the pace of the world’s transition to cleaner fuels.