Oil markets ignore a significant increase in US inventories

Oil prices rose in early Asian trading Thursday, while the market ignored the large increase in US crude stocks and the International Energy Agency raised its forecast for demand.

And the Energy Information Administration said that US crude stocks jumped last week by 16.3 million barrels to 471.4 million barrels, the highest level since June 2021. The increase, which was larger than expected, was mainly due to adjusting the data, which analysts said mitigated its impact on oil prices. oil.

price move

By 0131 GMT, Brent crude futures rose 26 cents to $85.64 a barrel, while US West Texas Intermediate crude futures rose 34 cents to $78.93.

Prices also received support from the International Energy Agency’s expectation that oil demand will rise by two million barrels per day in 2023, an increase of 100 thousand barrels per day from last month’s expectations, to a record level of 101.9 million barrels per day, and that China is the source of 900 thousand barrels per day of the increase.

The agency said China will account for nearly half of oil demand growth in 2023 after it eases COVID-19 restrictions.

OPEC also raised its expectations for the growth of global oil demand in 2023 by 100,000 barrels per day compared to last month’s expectations, to reach 2.3 million barrels per day in 2023.

This is the first upward revision by the Organization of the Petroleum Exporting Countries (OPEC) in months, noting China’s easing of anti-COVID-19 restrictions and a slightly stronger outlook for the global economy.

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“OPEC” said in its latest monthly report, “The key to oil demand growth in 2023 will be China’s return from restrictions on movement and its impact on the country, the region and the world.”

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