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Oil prices experienced an increase on Thursday, buoyed by OPEC’s optimistic forecast for robust global oil demand growth over the next two years. Brent crude futures rose by 28 cents to reach $78.16 per barrel, while US West Texas Intermediate crude futures increased by 34 cents, reaching $72.90.
According to OPEC’s monthly report, global oil demand is projected to grow by 1.85 million barrels per day to reach 106.21 million barrels per day in 2025. For 2024, OPEC anticipates a demand increase of 2.25 million barrels per day, consistent with the forecast from the previous month.
In addition to the positive outlook, disruptions in US oil production due to cold weather lent support to prices. North Dakota reported a decline in oil production between 650,000 and 700,000 barrels per day, less than half of the usual production, attributed to temperatures below zero.
US government data on oil inventories is expected later in the day, following reports from the American Petroleum Institute indicating a rise of 480,000 barrels in domestic crude inventories last week.
Despite geopolitical tensions and uncertainties in the market, the Executive Director of the International Energy Agency (IEA), Fatih Birol, expressed optimism about oil markets, stating that they are expected to be in a “comfortable and balanced position” in 2023. He emphasized this outlook at the annual meeting of the World Economic Forum in Davos.
