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14/06/24
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Crude Prices Higher on Optimistic Estimates for Demand Growth
On Friday, Brent oil futures prices edged up and were on track for their best week in over 4 months after forecasts for solid fuel and crude oil demand in 2024.
Brent crude futures were 53 cents higher at $83.28 per barrel. West Texas Intermediate (WTI) U.S. crude futures were 41 cents higher at $79.03 per barrel.
Over the week, Brent and the U.S. benchmark have risen nearly 4.5%. This would be Brent’s highest weekly increase in percentage terms since the week that ended on February 9. WTI is set for its biggest weekly increase since the week that ended on April 5.
Prices dropped last week after a decision by OPEC+ to phase out output cuts beginning from October.
Sentiment however moved this week after OPEC, the U.S. Energy Information Administration (EIA), and the International Energy Agency (IEA) updated their forecasts on the global oil supply-demand balance for this year.
Although the EIA slightly upgraded its oil demand growth estimate, OPEC kept to its forecast for reasonably strong growth of 2.2M barrels per day. The IEA reduced its demand growth forecast to under one million bpd.
Commerzbank analysts said all three forecasters predicted a supply deficit until at least the start of winter.
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