Oil prices rise on positive demand outlook, OPEC assurances, and bullish economic data from China, suggesting a potential recovery in the oil market.
The U.S. crude oil benchmark was trading up over 2% on Monday, with Brent gaining over 1.7% as the market digested data suggesting an improving demand outlook . At 228 p.m. ET on Monday, Brent crude was trading up 1.73% at $84.05, for a gain of $1.43 on the day. West Texas Intermediate WTI was trading up 2.17% at $80.15, for a gain of $1.70 on the day.
has taken pains to assure markets that it could rethink plans to put more barrels on the market if conditions dictate. 'The outlook for strong fuel demand into the coming quarter and Saudi reassurance about the October hike being subject to prevailing conditions and added focus on quota breakers to bring production down and into line all seems to be supporting,' Reuters cited Ole Hansen of Saxo Bank as saying on Monday.
assurances. Also driving oil prices upwards on Monday was economic data coming out of China and suggesting more optimism for oil demand growth there. While Chinese industrial output came in below expectations, investment in manufacturing so far this year was up 9.6%.
voluntary cuts and the cartel’s demand forecast. Rystad estimated supply growth at around 80,000 barrels per day for 2024, down from earlier expectations of 900,000 bpd, which had been made in early June Reuters reported on Monday. For this year, Rystad expected to remove 830,000 bpd from the market, while 2025 could see the expanded cartel take 1.04 bpd off the market. Rystad vice-president Patricio Valdiviesco told Reuters later in the day that it was “difficult to remain completely bearish when global supply growth is expected to slow down” this year, with reduced production still possible next year. By Josh Owens for Oilprice.com
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