Oil prices witnessed an upswing on Thursday, propelled by optimistic forecasts from both the International Energy Agency (IEA) and the Organisation of Petroleum Producing Countries (OPEC).
These forecasts indicate a robust growth trajectory for global oil demand in the current year, while additional impetus is derived from disruptions in U.S. output and geopolitical uncertainties in the Middle East.
At 10:05 GMT, Brent crude futures saw an increase of 37 cents, or 0.5%, reaching $78.25 per barrel. Concurrently, U.S. West Texas Intermediate crude futures experienced a rise of 55 cents, or 0.8%, reaching $73.11.
The IEA’s latest monthly report projects an increase in oil demand by 1.24 million barrels per day (bpd) in 2024, marking a significant uptick of 180,000 bpd from its previous estimate. The agency attributes this optimistic outlook to enhanced economic growth and lower crude prices in the fourth quarter.
In alignment with the IEA, OPEC, in its forecast on Wednesday, maintained its expectation of demand growth at 2.25 million bpd for the current year, consistent with its December projection. Furthermore, the producer group anticipates a robust increase in oil demand by 1.85 million bpd in 2025, reaching a total of 106.21 million bpd.
Fatih Birol, the Executive Director of the IEA, expressed confidence on Wednesday, stating that despite Middle East tensions, escalating supply, and a moderated demand growth outlook, he anticipates oil markets to remain in a “comfortable and balanced position” throughout the year.