Connect with us

Hi, what are you looking for?


Oil prices near one-month highs as demand outlook improves, as per industry forecasts

Oil prices eased on Thursday but remained close to a one-month high driven by more positive demand forecasts from the International Energy Agency and OPEC as major economies recover from the pandemic.

Brent crude was down 25 cents, or 0.4 percent, cents at $66.33 a barrel by 0945 GMT, after reaching $66.94 earlier, the highest since March 18.

US West Texas Intermediate futures fell 30 cents, or 0.5 percent, to $62.85 a barrel, earlier rising to $63.48, also the highest since March 18.

For all the latest headlines follow our Google News channel online or via the app.

Both contracts rose by about 5 percent on Wednesday.

“Support is coming from various sides: for one thing, the macro environment remains favorable in terms of the economic outlook, the high risk appetite among investors and the weak US dollar,” Commerzbank said.

The IEA and Organization of the Petroleum Exporting Countries (OPEC) revised their global oil demand growth forecasts for 2021 higher this week to 5.7 million barrels per day (bpd) and 5.95 million bpd, respectively.

Prices also found support from a big fall in US inventories.

US crude inventories were down by 5.9 million barrels last week, Energy Information Administration (EIA) data showed, with East Coast crude stocks hitting a record low.

“We see robust stock draws even after factoring in bearish risks as refinery runs are set to rise sharply in the coming months,” Citi Research analysts said in a note.

Gasoline supplied to the market last week, an indicator of US consumption of the fuel, increased to 8.9 million bpd, the highest since August, the EIA said.

Supply discipline and rebounding economies are set to give oil a chance to break out of the recent range, Goldman Sachs analysts said in a report.

“We remain positive on Brent oil forecasting US$80/bbl in 3Q21 on a near-term demand recovery and supply discipline,” they said.

Next articles

IEA ups oil global demand forecast as COVID vaccinations brighten outlook

Oil prices maintain upward momentum despite fresh coronavirus concerns

OPEC+ agrees to gradually boost oil output in coming months



You May Also Like


Sitting by herself at the funeral of Prince Philip on Saturday, Queen Elizabeth cut a regal, but solitary figure: still the monarch, but now...


Germany’s vaccine commission, known as STIKO, recommended on Thursday that people under 60-years old who have had a first shot of AstraZeneca’s COVID-19 vaccine...


Activists opposed to Myanmar’s junta called on Monday for people to stop paying electricity bills and agricultural loans, and keep their children away from...


United Arab Emirates power producer Abu Dhabi National Energy Co. (TAQA) announced on Wednesday plans to increase its renewable energyassets, in a shift away...