2024-03-15 06:12:05
Oil market conditions: WTI oil closes at $1.54 following IEA expects tight oil supply.
InfoQuest – West Texas crude oil futures (WTI) in New York closed higher at a four-month high on Thursday (March 14) following the International Energy Agency (IEA) forecast that oil supply in the market The world will be tighter this year. along with increasing the forecast for the expansion of oil demand this year as well
The WTI crude oil contract is for delivery in April. Increased 1.54 or 1.93% to close at 81.26 dollars/barrel. which is the highest level since 2 Nov. 2023
Brent crude oil contract (BRENT) for delivery in May. Rose $1.39 or 1.65% to close at $85.42/barrel. This is the highest level since 6 Nov. 2023.
WTI oil prices surged above $81 following the IEA raised its forecast for oil demand growth in 2024, the fourth such increase since November. 2023 due to Houthi rebel attacks on shipping vessels in the Red Sea, affecting shipping in the region.
The IEA forecasts oil demand will increase by 1.3 million barrels per day in 2024, up 110,000 barrels per day from last month’s forecast. However, this figure is still lower than in 2023, when oil demand grew 2.3 million bpd. million barrels/day
The IEA also lowered its 2024 oil supply forecast, expecting supply to increase only 800,000 barrels/day to 102.9 million barrels/day in 2024, lower than the previous forecast of 103.8 million barrels/day.
Such forecasts are a factor supporting oil prices to continue rising from Wednesday. After the US Energy Information Administration (EIA) revealed that US crude oil stocks decreased by 1.5 million barrels last week. Contrary to analysts’ expectations for an increase of 900,000 barrels, gasoline stocks decreased by 5.6 million barrels, more than analysts expected to drop by just 1.9 million barrels.
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