By 1040 GMT, Brent crude futures rose 49 cents, or 0.68 percent, to $72.38 per barrel. US West Texas Intermediate crude futures also increased 48 cents, or 0.70 percent, to $68.60.
“Crude oil prices rose slightly as the impact of tight supply in the physical market outweighed fears of falling demand. Physical market trading was particularly active, with any available cargoes purchased quickly,” analysts at ANZ said in a note.
But expectations of a decline in demand and its decline in… Chinaa major consumer, continues to influence investor sentiment and crude oil prices.
Charalambos Pisouros, a senior analyst at
He added, “All these developments maintain the risks surrounding oil prices and make them inclined toward decline, indicating that West Texas Intermediate crude may soon decline to its lowest level in September at around $65.70.”
Yesterday, Tuesday, OPEC reduced its expectations for the growth of global oil demand for the current and next years, attributing this to weak demand in China, India and other countries. This is the organization’s fourth consecutive downward review for the year 2024.
Oil prices rose 0.1 percent at settlement yesterday, Tuesday, following this news, after falling by about five percent during the previous two sessions.
OPEC also reduced its estimate for global oil demand growth in 2025 to 1.54 million barrels per day from 1.64 million barrels per day.
The International Energy Agency is scheduled to issue an update to its forecasts tomorrow, Thursday.
On the supply side, Barclays Bank said that markets may remain affected by supply disruptions from Iran or further escalation between it and Israel.
Trump’s expected nominee to serve as Secretary of State is Senator Marco Rubio, who is known for his hard-line stance toward Iran, China, and Cuba. Tighter sanctions on Tehran could disrupt global oil supplies, while a tougher approach toward China could weaken oil demand.
Investors are also awaiting the American Petroleum Institute data scheduled to be released at 2130 GMT today.
The average estimate of analysts polled by Reuters indicates that crude inventories will rise by about 100,000 barrels in the week ending November 8.
