Oil steadies after IEA raises demand growth forecast

Oil prices stabilized on Thursday after the International Energy Agency raised its forecast for demand growth for crude this year, as rising gas prices prompted some consumers to switch to oil.

By 0829 GMT, Brent crude futures fell seven cents, or 0.1 percent, to $ 97.33 a barrel, while West Texas Intermediate crude futures fell nine cents, or 0.1 percent, to $ 91.84 a barrel.

The Paris-based International Energy Agency said in its monthly oil report, in which it raised its forecast for demand in 2022 by 380,000 barrels per day, “Natural gas and electricity prices rose to new records, spurring the transition from gas to oil in some countries.”

However, last week’s rise in US oil inventories and the resumption of crude flows in a pipeline supplying central Europe limited price gains.

The US Energy Information Administration said the US crude oil inventories rose 5.5 million barrels in the last week, well above expectations for an increase of 73,000 barrels.