Weekly Crude Oil Review: Prices See Stable Movement
WTI Crude oil futures are witnessing stable moves, hitting near $80 per barrel amid a sustained uptick. Prices have moved up from around two month low this week amid a decline in US crude inventories. EIA data showed that US crude stockpiles fell by 2.508 million barrels last week, declining for the second straight week. Oil prices also tracked firm US equities. The Dow Jones Industrial Average crossed the 40,000 mark for the first time on Thursday. The MCX Crude oil futures for May approached near Rs 6700 per barrel mark before easing marginally.
The International Energy Agency or IEA stated in a latest monthly update for May 2024 that global oil demand is set to rise by 1.1 mb/d in 2024, 140 kb/d less than projected in last month’s Report as weak deliveries, notably in Europe, shifted first-quarter OECD demand into contraction. The outlook for 2025 is comparatively unchanged, with the pace of growth now marginally surpassing 2024 at 1.2 mb/d. World oil supply is projected to increase by 580 kb/d this year to a record 102.7 mb/d as non-OPEC+ output rises by 1.4 mb/d while OPEC+ production falls 840 kb/d, assuming that voluntary cuts are maintained. Global gains of 1.8 mb/d are expected in 2025 as non-OPEC+ add a further 1.4 mb/d. In April, world oil supply fell 200 kb/d to 102 mb/d.
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