Oil prices rose on Wednesday as growth in U.S. oil production is expected to remain largely flat through 2025, easing oversupply concerns.
Brent crude futures were up 38 cents, or 0.5%, at $78.97 a barrel by 0013 GMT, while WTI crude was up 41 cents, or 0.6%, at $73.72 a barrel.
Both contracts rose slightly on Monday.
EIA reported that US domestic production will not exceed the December 2023 record of 13.3 million barrels per day until February 2025. It also reduced its forecast for domestic oil production growth in 2024 by 120,000 barrels per day (bpd) to 170,000 bpd; This is well below last year’s production increase of 1.02 million barrels per day.
US government data on oil inventory will be released later Wednesday. U.S. crude stocks are expected to rise by 1.9 million barrels as they recover after cold weather hit production last week and refineries begin maintenance.
Meanwhile, the US, Qatar, and Egyptian mediators are preparing a diplomatic move to resolve differences between Israel and Hamas over the ceasefire plan for Gaza, after the Palestinian group responded to an offer for a long pause in hostilities and the release of hostages.
Traders are closely monitoring the situation in the Middle East, particularly attacks by Iran-backed Houthi rebels on shipping in the critical Red Sea; These attacks disrupted traffic in the Suez Canal, the fastest sea route between Asia and Europe.
