WTI crude futures rose above $76 in response to expectations of rising oil demand for next year.
At 6:29 p.m. Thai time, West Texas Crude Oil Contract (WTI) for delivery in January. which traded on NYMEX plus $ 0.66, or 0.88%, to $ 76.05 per barrel.
WTI oil prices continued to rebound from yesterday, gaining 3% on the back of lower-than-expected consumer price index (CPI) releases. This will be a factor that encourages the US Federal Reserve (Fed) to slow down the rate hike.
The Organization of the Petroleum Exporting Countries (OPEC) released its report on global oil demand forecasts for next year. The positive factor was from the increasing demand for oil in the US and China.
However, in the report on oil market conditions for the month of December OPEC said oil demand will increase by 2.2 million barrels per day in 2023 to 101.8 million barrels per day. This was supported by the easing of geopolitical conditions. and how China can control the spread of COVID-19
OPEC also stated that Oil demand in the US will be higher than in 2019, which was before the COVID-19 pandemic.
The International Energy Agency (IEA) issued a report warning that Oil prices are set to soar in 2023, hurt by tighter markets amid Western sanctions on Russia. While oil demand is higher than expected.
“While the drop in oil prices is a welcome relief for consumers facing rising inflation, it is still a blessing in disguise. But we will continue to monitor the impact of sanctions on Russian crude and oil products,” the report said.
The IEA expects Russian oil production to fall 14% to 9.6 million barrels per day by the end of the first quarter of 2023. It will cause the price of oil contracts to rebound once morest the trend that has declined previously.
The IEA forecast global oil demand will increase by 1.7 million barrels per day in 2023 to 101.6 million barrels per day. This was driven by oil demand from India and China.
At the same time, oil prices are also positive factors from tightness in the market. After the Canadian energy giant TC Energy announced the closure of the Keystone pipeline. due to an oil leak Keystone is an oil pipeline from Alberta, Canada, to the Gulf Coast and Midwestern United States.
Investors still expect China to reopen the country. After the measures to control COVID-19 are relaxed. continually which will increase demand for oil
Goldman Sachs released a report expecting The demand for oil in China has increased following opening up the country. Will be a factor driving oil prices in the world market to rise another $ 15 / barrel.
“China’s oil demand will increase by 1 million barrels per day on average from 2022 to 2023,” the report said.
Bloomberg News reported that China’s relaxation of COVID-19 control measures Has resulted in the rapid recovery of the domestic aviation industry and help ease the financial crisis of China’s three major airlines following suffering billions of dollars in losses since the outbreak of COVID-19.
Investors will be keeping an eye on the US Energy Information Administration’s (EIA) crude inventories release following the American Petroleum Institute (API) said crude inventories rose 7.8 million barrels last week. Stocks declined by 3.6 million barrels, contrary to analysts’ expectations.