Oil prices rose slightly in early Asian trading on Wednesday, as hopes of increased demand in developing countries and the world’s largest oil exporters cut supplies offset fears of an economic slowdown leading to a rise in US crude stocks.
Prices were pressured by the rise in US crude stocks by about three million barrels in the week ending July 7, according to data from the American Petroleum Institute. Analysts polled by Reuters had expected an increase in crude stocks by 500 thousand barrels.
price move
Brent crude futures rose 18 cents to $79.58 a barrel by 0305 GMT, and US West Texas Intermediate crude rose 18 cents to $75.01.
In the previous session, oil rose about 2 percent, supported by the dollar’s decline and expectations of an increase in global demand for crude.
The International Energy Agency expects the current market tightness to continue in the second half of 2023, citing strong demand from China and developing countries as well as recently announced supply cuts, including by major exporters Saudi Arabia and Russia.
At the same time, the US Energy Information Administration expected, on Tuesday, that demand will exceed supply by 100 thousand barrels per day in 2023 and by 200 thousand in 2024.
Markets await US inflation data, Wednesday, in search of clues to expectations of interest rates, which could lead to a rise in slowing economic growth and reducing demand for oil.
2023-07-12 03:13:12
#Oil #rises #supported #production #cuts #hopes #increased #demand
