Oil prices rose on Thursday as OPEC relatively strong growth forecast in global oil demand over the next two years, geopolitical tensions in the Middle East as well as a cold wave and cuts to U.S. oil production.
Brent crude futures were up 21 cents, or 0.3%, at $78.09 a barrel by 05:05 GMT, while West Texas Intermediate (WTI) crude futures were up 40 cents, or 0.6%, at $72.96 a barrel.
OPEC said in its monthly report that world oil demand is expected to increase by 1.85 million barrels per day in 2025, reaching 106.21 million barrels per day. OPEC saw a demand increase of 2.25 million barrels per day for 2024, unchanged from its December forecast.
However, price increases have remained limited as the market considers mixed factors.
Brent crude oil prices have generally remained in a range, as they have for the past two weeks, as market participants try to balance mixed supply-demand dynamics with current geopolitical tensions.
While the unexpected increase in US crude stocks and the difficult recovery conditions in China continue to cast a shadow on the oil demand outlook, the market remains cautious about geopolitical developments.
Pakistan has carried out attacks targeting Baloch militants inside Iran in recent tensions, a senior intelligence official said on Thursday, two days after Iran launched an attack on Pakistani territory.
Meanwhile, in North Dakota, the top oil-producing state in the United States, temperatures below minus 18 degrees Celsius caused oil production to fall by 650,000 to 700,000 barrels per day, less than half of typical production.
US government data on oil stocks will be released at 1600 GMT on Thursday. Domestic crude stocks increased by 480,000 barrels last week, according to market sources citing Wednesday figures from the American Petroleum Institute (API).
Fatih Birol, director general of the International Energy Agency (IEA), said in his statement that the International Energy Agency (IEA) expects oil markets to be in a “comfortable and balanced position” this year despite the tensions in the Middle East.
Attacks by Yemen’s Houthis on ships in the Red Sea have led many companies to divert their cargo from southern Africa, increasing journey times and costs.
