Oil prices rose on Thursday with OPEC’s expectations of relatively strong global demand for oil over the next two years and disruptions to oil production in the United States due to cold weather. By 0004 GMT, Brent crude futures rose 28 cents to $78.16 a barrel, while West Texas Intermediate (WTI) futures increased 34 cents to $72.90 a barrel.
According to a monthly report by OPEC, global oil demand is expected to increase by 1.85 million barrels per day to reach 106.21 million barrels per day in 2025. As for 2024, OPEC predicts a growth in demand of 2.25 million barrels per day, which aligns with their previous forecast issued last month.
At the same time, the state of North Dakota announced that temperatures dropping below zero had caused a decrease in oil production there, ranging from 650,000 to 700,000 barrels per day, which is less than half of the usual production. North Dakota is one of the largest oil-producing states in the United States.
The US government’s oil inventory data is scheduled for release later today. According to sources in the market citing figures from the American Petroleum Institute, local crude inventories increased by 480,000 barrels last week, on Wednesday.
The executive director of the International Energy Agency, Fatih Birol, told Reuters that the agency expects the oil markets to be in a “comfortable and balanced position” this year, despite tensions in the Middle East amidst increasing supplies and slowing demand growth.
He made his comments on the sidelines of the annual World Economic Forum in Davos on Wednesday. (Reuters)
