By Arathy Somasekhar
(Reuters) – Oil prices rose on Wednesday on upbeat views on global demand from the U.S. Energy Information Administration and OPEC.
Brent crude futures rose 11 cents, or 0.1%, to $82.04 a barrel by 0016 GMT, while West Texas Intermediate (WTI) crude futures gained 18 cents, or 0.2%, to $78.10.
The EIA raised its forecast for global oil demand growth in 2024 to 1.10 million barrels per day, up from a previous estimate of 900,000 bpd, while the Organization of the Petroleum Exporting Countries (OPEC) maintained its forecast for 2024 of relatively strong growth in global oil demand, citing expectations for travel and tourism in the second half of the year.
Prices fell more than 2% last week after OPEC and its allies announced they would phase out production cuts starting in October.
“Although it announced last week that it will begin to phase out some of the voluntary cuts later this year, its forecasts suggest that it should be easily accepted by the market,” ANZ analysts said in a note to clients, adding that demand for oil is expected to increase. it will be driven by China and other emerging economies.
US crude oil inventories fell by 2.428 million barrels in the week ending June 7, according to market sources citing figures from the American Petroleum Institute. Inventories were expected to have fallen by just over a million barrels last week, a preliminary Reuters poll showed.
Data from the EIA, the US government’s statistics arm, is expected later on Wednesday.
Investors are also eagerly awaiting the Consumer Price Index report, which will be released before the bell on Wednesday, and the US central bank’s policy announcement, expected later the same day.
Friday’s US monthly employment report was stronger than expected. Markets have lowered expectations for the Federal Reserve’s first rate cut in September, now predicting about a 50% chance, according to CME’s FedWatch tool
Chinese producer and consumer price inflation figures are also expected to be released during the day.
(Reporting by Arathy Somasekhar in Houston; Editing by Shri Navaratnam)
