Global Demand Forecast Pushes Oil Prices Higher, U.S. Crude Inventories Down

Giovanni Staunovo, an analyst at UBS (UBS), said fears of another sharp increase in total inventories have not materialized, which has supported prices.The IEA's monthly report said it expects oil demand to increase by 1.24 million barrels per day (bpd) in 2024, an increase of 180,000 bpd over previous forecasts /day.

On Wednesday, the Organization of the Petroleum Exporting Countries (OPEC) said it expects demand growth of 2.25 million b/d this year, unchanged from last December's forecast. OPEC also said it expects oil demand to grow strongly by 1.85 million bpd in 2025 to 106.21 million bpd.

Speaking at the Reuters Global Markets Forum, IEA Executive Director Fatih Birol said he expects the oil market to remain comfortable and balanced this year, despite tensions in the Middle East, increased supply and slower demand growth.

The largest oil-producing state in the United States, North Dakota (North Dakota), the oil pipeline authority (pipeline authority) said on Wednesday, due to extreme cold weather and operational challenges, about 40% of North Dakota's oil production is still in a state of shutdown. eia data show that last week's U.S. crude oil production hit a new record high of 13.3 million barrels per day.

Mitsubishi UFJ Financial Group (MUFG) analyst Ehsan Khoman (Ehsan Khoman) said oil prices have fluctuated in a narrow range in recent days, reinforcing the notion that investors are unconcerned by concerns that oil tankers may be at risk from Red Sea attacks.

Vessel tracking data show that the original sailed away from the Red Sea tankers have turned back, through the Bab al-Mandab Strait (Bab al-Mandab Strait), although tensions in the region continue to disrupt global shipping and trade.