WTI crude futures rose above $76 in response to expectations of increased oil demand for next year.
At 6:29 pm Thai time, the West Texas Crude Oil Contract (WTI) is due for delivery in January. which was trading on the NYMEX plus $0.66, or 0.88%, to $76.05 a barrel.
WTI oil prices continued to rebound from yesterday, gaining 3% on the back of lower than expected consumer price index (CPI) releases. This will be a factor that encourages the United States Federal Reserve (Fed) to slow down the rate increase.
The Organization of the Petroleum Exporting Countries (OPEC) released its report on global oil demand forecasts for next year. The positive factor was the growing demand for oil in the United States and China.
However, in the report on oil market conditions for December OPEC said that oil demand will increase by 2.2 million barrels per day in 2023 to 101.8 million barrels per day. This was supported by easing geopolitical conditions. and how China can control the spread of COVID-19
OPEC also said that oil demand in the US will be higher than in 2019, which was before the COVID-19 pandemic.
The International Energy Agency (IEA) published a report warning that oil prices are expected to soar in 2023, hurt by tighter markets amid Western sanctions on Russia. Although the demand for oil is higher than expected.
“While the drop in oil prices is a welcome relief for consumers facing rising inflation, it is still a blessing in disguise. But we will continue to monitor the impact of sanctions on Russian crude and oil products,” the report said.
The IEA expects Russian oil production to fall 14% to 9.6 million barrels per day by the end of the first quarter of 2023. It will cause the price of oil contracts to rebound against the previously downtrend.
The IEA predicts that global oil demand will increase by 1.7 million barrels per day in 2023 to 101.6 million barrels per day. This was driven by demand for oil from India and China.
At the same time, oil prices are also positive factors of market tightness. After the Canadian energy giant, TC Energy, announced the closure of the Keystone pipeline. due to an oil spill Keystone is an oil pipeline from Alberta, Canada, to the Gulf Coast and Midwest United States.
Investors are still waiting for China to reopen the country. After the measures to control COVID-19 were relaxed. continuously which will increase the demand for oil
Goldman Sachs released a report expecting Oil demand in China has increased after the opening of the country. Which will be a factor that drives oil prices in the global market to rise another $ 15 / barrel.
“China’s oil demand will increase by an average of 1 million barrels per day between 2022 and 2023,” the report said.
Bloomberg News reported that China’s easing of COVID-19 control measures led to the rapid recovery of the domestic aviation industry and helped ease the financial crisis of China’s three major airlines after suffering billions of dollars in losses since the start of COVID-19.
Investors will be keeping an eye on the US Energy Information Administration’s (EIA) crude inventories release after the American Petroleum Institute (API) said crude inventories rose by 7.8 million barrels last week. Stocks fell 3.6 million barrels, contrary to analysts’ expectations.
