Oil up on Wednesday

Oil prices surged as industry data indicated a decrease in US crude stockpiles before an International Energy Agency (IEA) report on market projections.

Brent futures surpassed $82 per barrel, up nearly 3 per cent from the week’s beginning, with West Texas Intermediate (WTI) hovering around $78.

The American Petroleum Institute disclosed a 2.4 million-barrel decline in US crude inventories last week. This rebound follows a selloff triggered by OPEC+’s intention to boost output, augmenting ample supply from non-member sources.

The US anticipates record production in 2024, surpassing previous estimates. OPEC+ maintains an optimistic outlook, projecting demand growth in the latter half of the year, a sentiment echoed in its monthly report, which diverges from industry expectations.

Warren Patterson of ING Groep NV anticipates a substantial third-quarter deficit, signaling potential price upticks.

Attribution: Bloomberg.