Mostafa Reda – Mubasher: Oil futures expanded their gains during trading today, Thursday, following expectations that global demand for crude would record a record level during the current year.
And by 3:39 pm GMT, the price of futures contracts for “Nymex” crude for August delivery increased by 1.1 percent, to record a level of $ 76.6 a barrel.
At the same time, the benchmark Brent crude futures price increased by 1.3 percent, at $81.17 a barrel.
Today, the International Energy Agency expected oil demand to rise to a record level this year with limited supply, but in light of adverse economic conditions and raising interest rates, the increase will be slightly less than expected.
The agency predicted an increase in demand growth next year more than expected, although the increase will be less than half of this year’s increase.
In its monthly report on oil, it stated that the global demand for oil is under pressure from the difficult economic environment resulting from reasons including monetary tightening in particular in many developed and developing countries.
Despite expectations of demand reaching 102.1 million bpd, the agency cut its growth forecast for the first time this year by 220,000 bpd to 2.2 million bpd.
The agency expected a lack of supply in the oil market, with the volume of demand exceeding supplies for the rest of 2023.
The agency said that it expects more than two-thirds of demand growth this year to come from China, as the pace of economic recovery is set to increase after the pandemic, especially later this year, but China’s recovery is proceeding at a slow pace so far, adding that the expected reopening is on a large scale. widespread in China failed to extend to sectors other than travel and services; The economic recovery is losing momentum after picking up earlier in the year.
She indicated that demand in developed countries, especially Europe, is still weak with the decline in manufacturing activity, and developed countries that are members of the Organization for Economic Cooperation and Development tend to record a contraction in demand for four consecutive quarters until the last quarter of 2023.
And the agency added that the growth in oil demand tends to decline by the next half of the year to 1.1 million barrels per day, which reflects the tendency to manufacture electric cars and rationalize energy, although the agency raised its estimates with an increase of 860 thousand barrels per day, which it expected last month.
The agency said that the strong outlook for the global economy in the coming year and an expected increase in the use of gas oil in China helped to raise expectations.
Yesterday, government data showed that consumer prices in the United States rose slightly in June and recorded their lowest annual increase in more than two years, as inflation continued to decline.
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2023-07-13 15:10:26
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