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11/06/24
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Crude Prices Inch Up as OPEC Expects Oil Demand In 2024 To Be Relatively Strong
On Tuesday, crude prices inched up slightly as OPEC maintained its forecast for relatively strong growth in oil demand globally this year and as investors awaited the outcome of the Fed’s policy meeting to see how changing prices may affect demand.
Brent crude futures were 49 cents, or 0.6% higher, to $82.11 per barrel, continuing to recover since closing at $77.52 the prior week. That close, the lowest since Feb., came amid worries about low demand and oversupply through the rest of this year.
U.S. West Texas Intermediate (WTI) crude futures were 41 cents, or 0.6% higher, at $78.15 per barrel.
OPEC stuck to its forecast for 2024 for relatively strong growth in oil demand globally, despite lower than anticipated use in Q1, and said tourism and travel would support consumption in the second half of this year.
Earlier this month, OPEC and allies agreed to extend most of its deep oil output cuts far into next year.
On Tuesday, the World Bank said the U.S. economy’s better-than-expected performance has resulted in it lifting its global growth outlook for 2024 slightly but warned that overall output would stay much lower than pre-pandemic levels until 2026.
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