FALCON POWERS – Oil prices rose on Wednesday, supported by optimistic forecasts from the U.S. Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries (OPEC) regarding an increase in demand.
By 11:01 GMT, Brent crude futures rose 81 cents, or 0.99%, to $82.73 per barrel. U.S. West Texas Intermediate (WTI) crude futures gained 92 cents, or 1.2%, to $78.82, according to Reuters. The EIA raised its 2024 global oil demand growth forecast to 1.10 million barrels per day (bpd), up from the previous estimate of 900,000 bpd, while OPEC maintained its relatively strong 2024 global crude demand growth outlook.
OPEC had kept its expectations for relatively strong global oil demand growth this year despite a larger-than-expected decline in consumption, noting that travel and tourism will support consumption in the second half of the year. The organization expects global oil demand to rise by around 2.25 million bpd this year and by 1.85 million bpd next year, unchanged from the previous month’s estimates.
The International Energy Agency (IEA) said on Wednesday that global oil demand will peak by 2029 and then start to decline, while supply is expected to significantly exceed demand by the end of the decade. The IEA, based in Paris, expects supply to reach nearly 114 million bpd by 2030, an increase of eight million bpd from the expected demand.
