Lower US production growth predictions cause oil prices to climb
At 00:13 GMT, U.S. West Texas Intermediate crude increased by 41 cents, or 0.6%, to $73.72, while Brent oil futures increased by 38 cents, or 0.5%, to $78.97 a barrel. On Monday, there was a little increase in both contracts.
As worries about an oversupply of oil are reduced, oil prices increased on Wednesday. US oil output growth is predicted to stay mostly flat through 2025.
At 00:13 GMT, U.S. West Texas Intermediate crude increased by 41 cents, or 0.6%, to $73.72, while Brent oil futures increased by 38 cents, or 0.5%, to $78.97 a barrel. On Monday, there was a little increase in both contracts.
In its short-term energy forecast released on Tuesday, the US Energy Information Administration (EIA) predicted that domestic US production won't surpass the record set in December 2023, which stands at 13.3 million barrels per day, until February 2025.
In contrast to last year's output increase of 1.02 million barrels per day (bpd), the EIA reduced its prediction for domestic oil production growth in 2024 by 120,000 barrels per day (bpd) to 170,000 bpd.
Later on Wednesday, US official statistics on oil inventories will be made public. The output rebound from the freeze and refiners' return to operation are believed to have contributed to a 1.9 million barrel increase in U.S. crude oil stockpiles last week.[EIA/s
As for the ceasefire plan for Gaza, US, Qatari, and Egyptian mediators have begun a diplomatic attempt to resolve issues between Israel and Hamas after the Palestinian organization reacted to a request for a prolonged truce and the release of captives. Be ready.
The Houthi rebels, who are supported by Iran, have launched assaults on ships in the Red Sea, disrupting business via the Suez Canal, which is the quickest maritime route connecting Asia and Europe. As a result, traders are keeping a careful eye on the situation in the Middle East. % of the world's oil commerce.
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