Ana sayfa » Oil climbs on optimistic OPEC and EIA demand outlook, data showing falling U.S. inventories

Oil climbs on optimistic OPEC and EIA demand outlook, data showing falling U.S. inventories

A moderate Fed stance at the upcoming meeting will spur economic growth and boost oil demand

by BUNKERIST

Oil prices rose on Wednesday, supported by optimistic U.S. Energy Information Administration and OPEC outlooks on global demand and industry data showing U.S. crude inventories fell more than expected last week.

Brent crude futures rose 50 cents, or 0.6%, to $82.42 a barrel by 0630 GMT, while WTI crude futures rose 62 cents, or 0.8%, to $78.52.

The EIA raised its 2024 world oil demand growth forecast to 1.10 million bpd from its previous forecast of 900,000 bpd, while the Organization of the Petroleum Exporting Countries (OPEC) maintained its 2024 forecast for relatively strong global oil demand growth in the second half, boosted by travel and tourism.

Prices fell more than 2% last week after OPEC and its allies said they would phase out production cuts from October.

Crude oil rose as OPEC continued to forecast stronger demand, with demand expected to be driven by China and other emerging economies.

Meanwhile, U.S. crude inventories fell by 2.428 million barrels in the week ending June 7, according to market sources citing figures from the American Petroleum Institute (API). The decline was bigger than analysts had expected.

Data from the EIA, the U.S. government’s statistics arm, is due on Wednesday at 1430 GMT.

Investors are also looking ahead to Wednesday’s U.S. Consumer Price Index report and the U.S. central bank’s policy announcement later that day.

Expectations of a moderate Fed meeting are likely to set the bullish momentum for oil today, and a moderate stance should spur economic growth and boost oil demand. However, the global economic slowdown could remain a bearish factor in the long term.

In China, the world’s largest importer of crude oil, consumer inflation held steady in May while declines in producer prices eased, suggesting Beijing needs to do more to support weak domestic demand and a shaky economic recovery.