Oil Market Conditions: WTI closed at $1.54 after the International Energy Agency forecast oil supply shortages.
InfoQuest – West Texas Intermediate (WTI) crude futures in New York closed higher at a four-month high on Thursday (March 14) after the International Energy Agency (IEA) forecast that oil supplies in the global market will be tighter this year. In addition to increasing expectations of an expansion in demand for oil this year as well
The WTI contract is scheduled for delivery in April. It rose 1.54, or 1.93%, to close at $81.26/barrel. This is the highest level since November 2, 2023
Brent crude oil (BRENT) contract for delivery in May. The price of oil rose by $1.39, or 1.65%, to close at $85.42 per barrel. This is the highest level since November 6, 2023.
West Texas Intermediate crude prices rose above $81 after the International Energy Agency raised its forecast for oil demand growth in 2024, the fourth such increase since November. 2023 due to Houthi attacks on cargo ships in the Red Sea, which affected shipping traffic in the region.
The International Energy Agency expects oil demand to rise by 1.3 million barrels per day in 2024, an increase of 110 thousand barrels per day from last month’s forecast. However, this number is still lower than in 2023, when oil demand grew by 2.3 million barrels per day. Million barrels per day.
The International Energy Agency also lowered its oil supply forecast for 2024, expecting supplies to increase by only 800,000 barrels per day to 102.9 million barrels per day in 2024, which is lower than the previous forecast of 103.8 million barrels per day.
Such expectations constitute a factor that supports oil prices to continue rising as of Wednesday. After the US Energy Information Administration (EIA) revealed that US crude oil inventories fell by 1.5 million barrels last week. Contrary to analysts' expectations of an increase of 900 thousand barrels, gasoline inventories decreased by 5.6 million barrels, which is more than analysts' expectations of a decrease of only 1.9 million barrels.
“Reader. Infuriatingly humble coffee enthusiast. Future teen idol. Tv nerd. Explorer. Organizer. Twitter aficionado. Evil music fanatic.”