The geopolitical risk premium in oil prices had been unwinding this week on the perception that the US could ensure tensions were managed
Meanwhile, OPEC also sees global economic growth of 2.8 per cent in 2024
Investors will look to economic data and monetary policy for potential clues on the outlook for oil demand
While Asia’s crude demand is robust, the same can’t be said for its refinery margins, which have been squeezed by higher oil prices
OPEC+ members, led by Saudi Arabia and Russia, last month agreed to extend voluntary output cuts of 2.2 million barrels per day to support the market
Europe’s firm demand, softness in US supply growth coupled with a possible extension of OPEC+ cuts through 2024 outweigh downside risk from persistent softness in China’s demand
This year, international oil prices have been strong, with Brent holding above $80 a barrel
In a sign of how bullish investors were becoming most buying came from the creation of new long positions
Morgan Stanley expects oil demand to grow at 1.5 million bpd this year which is slightly above the historical trend growth
Brent crude oil rose as much as 80 cents a barrel towards $85 after the IEA report was released, touching its highest since November
OPEC and the IEA, the world’s most closely watched forecasters of oil demand growth, are further apart than they have been for at least 16 years in their views on fuel use
OPEC+ is extending voluntary oil output cuts of 2.2 million barrels per day into the second quarter and this is expected to cushion the market
The oil demand outlook is uncertain for this year but OPEC expects another year of relatively strong demand growth of 2.25 million bpd
A decision on extending the cuts is expected in the first week of March, with individual countries expected to announce their decisions
The fuel price committee increased the retail rates for Super 98, Special 95, and E-Plus 91 by as much as 16 fils per litre in March
OPEC+’s de facto leader Saudi Arabia has said that the cuts could continue past the first quarter if needed
OPEC raised its world oil demand forecasts for the medium and long term in its annual outlook published in October
The level of spare capacity – or the perception of how much is available – can influence world oil prices.
OPEC said its “committee will continue to monitor” countries’ conformity with output decisions
OPEC oil output in January registered the biggest monthly drop since July, as several members implemented new voluntary production cuts
Brent crude oil futures fell 32 cents, or 0.4 per cent, to settle at $79.07 a barrel
The Southern African nation’s announced departure follows its protest against OPEC+’s decision to cut its output quota for 2024
Production restraint by OPEC+ allies has been more than offset by output growth from US shale firms and other sources
A coalition of more than 100 countries have been pushing for an agreement would for the first time promise an eventual end to the oil age
Germany’s state secretary and special envoy for climate action, Jennifer Morgan, said counties were now “moving into the critical stage of negotiations”
The Russian President is due to hold talks with UAE President Sheikh Mohammed bin Zayed Al Nahyan and Saudi Arabia’s Crown Prince Mohammed bin Salman
Members of OPEC+ agreed to make additional voluntary outputs in reduction, but the announced cuts were not as deep as expected.
The fuel price committee reduced the retail rates for Super 98, Special 95, and E-Plus 91 by as much as 7 fils per litre in December
The fuel price committee reduced the retail rates for Super 98, Special 95, and E-Plus 91 by as much as 0.41 fils per litre in November
Oil production tends to vary month by month, making it difficult to fix on a permanent production target