Oil prices surge amid upbeat demand expectations from EIA, OPEC

(MENAFN) During early trading on Wednesday, oil prices saw an uptick, buoyed by optimistic forecasts from both the US Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries (OPEC) regarding increased global demand for oil. Brent crude futures climbed 11 cents, or 0.1 percent, to USD82.04 per barrel, while US West Texas Intermediate crude futures rose 18 cents, or 0.2 percent, to USD78.10.

The EIA raised its projections for growth in global oil demand in 2024 to 1.10 million barrels per day, up from the previous estimate of 900 thousand barrels. Meanwhile, OPEC maintained its expectations for relatively robust growth in global demand for crude in 2024, citing anticipated increases in travel and tourism in the latter half of the year.

Last week, oil prices experienced a decline of more than 2 percent following an announcement by OPEC and its allies regarding plans to gradually phase out production cuts starting in October. However, market sentiment has been buoyed by projections that oil demand will be driven by both China and other emerging economies, as highlighted by analysts at ANZ Bank.

Additionally, data from the American Petroleum Institute revealed a decrease in US crude oil inventories by 2.428 million barrels in the week ending June 7. A preliminary poll suggested that inventories were expected to have fallen slightly more than one million barrels last week. Investors eagerly await further insight from the Energy Information Administration, with expectations that their data, expected later on Wednesday, will provide further clarity on oil market dynamics and inventory levels. 

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