Crude oil futures achieved their highest closing level in nearly a decade on Tuesday, September 12, following the announcement by the Organization of the Petroleum Exporting Countries (OPEC) that global oil demand is expected to remain robust throughout this year and the next.
WTI crude oil futures witnessed an increase of $1.55, marking a 1.8% rise, and concluded at $88.84 per barrel. This closing price represents the highest since November 11, 2022. Meanwhile, BRENT crude oil futures experienced a $1.42 increase, equivalent to a 1.6% surge, settling at $92.06 per barrel—their highest closing level since the same date in November 2022.
OPEC’s prediction of continued strong growth in global oil demand for 2023 and 2024 stems from encouraging signs in major economies surpassing expectations. The organization anticipates that global oil demand will escalate by 2.25 million barrels per day in 2024.
Edward Moya, an analyst at OANDA, noted that crude oil prices surged in response to OPEC’s report, affirming the enduring strength of global oil demand and indicating that oil supply will be more constrained than initially projected.
In addition to OPEC’s positive forecast, other factors contribute to the anticipation of tightened oil supply conditions in the global market. Both Russia and Saudi Arabia have voluntarily committed to oil supply reductions until the end of this year. Furthermore, Libya, an OPEC member, has ordered the closure of four oil export ports due to the adverse effects of storms and flooding.
Investors are keenly awaiting the release of a crude oil stock report from the U.S. Energy Information Administration (EIA) today, which is expected to offer further insights into the dynamics of the oil market.
The recent surge in oil prices, combined with OPEC’s optimistic outlook and supply constraints, highlights the resilience of the oil market and underscores the importance of monitoring global economic trends and geopolitical developments in the energy sector.
The Spot Market is Open
Wednesday, September 13, 2023
| Energy Updated at | USD Price | Change | %Change |
| Crude Oil 08.30 | 89.11 | +0.27 | +0.30% |