<p>According to Reuters, optimistic demand forecasts from the International Energy Agency and producer organization the Organization of the Petroleum Exporting Countries led to an increase in oil prices on Friday.<img decoding=”async” class=”alignnone wp-image-125027″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-oil-prices-rise-as-optimistic-projections-for-demand-growth-emerge-images-2023-08-12t155237.736-11zon.jpg” alt=”theindiaprint.com oil prices rise as optimistic projections for demand growth emerge images 2023 08 12t155237.736 11zon” width=”1245″ height=”697″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-oil-prices-rise-as-optimistic-projections-for-demand-growth-emerge-images-2023-08-12t155237.736-11zon.jpg 300w, https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-oil-prices-rise-as-optimistic-projections-for-demand-growth-emerge-images-2023-08-12t155237.736-11zon-150×84.jpg 150w” sizes=”(max-width: 1245px) 100vw, 1245px” title=”Oil prices rise as optimistic projections for demand growth emerge. 6″></p>
<p>Brent oil increased by 49 cents, or 0.6 percent, to $86.89 a barrel at 14:18 Saudi Arabian time, while US West Texas Intermediate crude futures up by 49 cents, or 0.6 percent, to $83.31.</p>
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<p>Both benchmarks have been gradually climbing since June, with Brent hitting its highest price since January on Thursday and West Texas Intermediate oil trading at its highest level this year.</p>
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<p>The IEA cautioned on Friday that global stocks might decline quickly during the last months of 2023, possibly pushing prices even higher. Despite the agency’s expectation that demand growth would drop to 1 million barrels per day in 2024—down 150,000 barrels per day from its earlier forecast—price increase may still be possible.</p>
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<p>Oil markets may have been overbought after a multi-week gain, according to Tina Teng, a market analyst with CMC Markets in Auckland, even if OPEC+ (Organisation of the Petroleum Exporting Countries and its allies) production cuts and improving demand outlooks remained optimistic factors.</p>
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<p>OPEC estimated that instead of 2.44 million bpd in 2023, the world’s oil consumption will rise to 2.25 million barrels per day in 2024. Both forecasts remained the same as the previous month.</p>
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<p>Oil consumption is expected to rise in 2024 as a result of “solid” economic growth and China’s continuous development, it was stated.</p>
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<p>The US consumer pricing figures for July, which were published on Thursday, improved market mood and raised hopes that the Federal Reserve’s rash of rate rises is nearing an end.</p>
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<p>“China’s sluggish economic data and the retreat on Wall Street weighs on risk sentiment,” said Teng. “A strengthened USD also pressured commodity prices.”</p>
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<p>Despite an increase in crude imports over the previous year, China’s total exports decreased by 14.5%, and monthly oil imports dropped from virtually record highs in June to the lowest levels since January.</p>
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<p>The second-largest economy in the world’s second-week data this week also showed that factory gate prices continued to fall in July and that consumer prices in China reached a condition of deflation, raising concerns about the demand for gasoline in that country.</p>
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<p>Prices have been maintained by Saudi Arabia and Russia continuing their production cutbacks as well as supply fears brought on by the potential interruption of Russian oil supplies to the Black Sea area due to the war between Russia and Ukraine.</p>
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<p>Baden Moore, head of commodity and carbon strategy markets at National Australia Bank, predicts a supply deficit for crude in the second half of this year, though it will be less than OPEC had anticipated, which had forecast a deficit of about 2 million barrels per day in the third quarter.</p>
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<p>Although our supply shortfall prediction is less severe, Moore added, “We anticipate it will be adequate to raise prices over $90/bbl through 2H23.</p>
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