Aug 11 (Reuters) – Oil costs settled up greater than $2 on Thursday after the Worldwide Power Company raised its oil demand progress forecast for this 12 months as hovering pure fuel costs have some customers switching to grease.
Brent crude futures gained $2.20, or 2.3%, to settle at $99.60 a barrel. U.S. West Texas Intermediate crude futures settled up $2.41, or 2.6%, to $94.34.
“Pure fuel and electrical energy costs have soared to new data, incentivising gas-to-oil switching in some international locations,” the Paris-based company stated in its month-to-month oil report. It raised its outlook for 2022 demand by 380,000 barrels per day (bpd).
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In contrast, the Group of the Petroleum Exporting International locations (OPEC) reduce its 2022 forecast for progress in world oil demand, citing the influence of Russia’s invasion of Ukraine, excessive inflation and efforts to include the pandemic.
OPEC expects 2022 oil demand to rise by 3.1 million bpd, down 260,000 bpd from the earlier forecast. It nonetheless sees a better total world oil demand determine than the IEA for 2022.
Costs have been additionally boosted because the U.S. greenback prolonged losses towards different main currencies after a report confirmed U.S. inflation was not as sizzling as anticipated in July, prompting merchants to dial again expectations for fee hikes by the Federal Reserve. learn extra
An increase in U.S. oil inventories final week and resumption of crude flows on a pipeline supplying central Europe capped worth good points.
U.S. crude oil shares rose by 5.5 million barrels within the newest week, the U.S. Power Info Administration stated, greater than the anticipated improve of 73,000 barrels. learn extra
Gasoline product provided rose to 9.1 million barrels per day, although that determine exhibits demand down 6% during the last 4 weeks from a 12 months earlier.
The premium for front-month WTI futures over barrels loading in six months was pegged at $4.38 a barrel, the bottom in 4 months, indicating easing tightness in immediate provides.
High U.S. Gulf of Mexico oil producer Shell (SHEL.L) stated a pipeline leak prompted it to halt manufacturing at three U.S. Gulf of Mexico deepwater platforms designed to supply as much as 410,000 barrels of oil per day mixed. learn extra
Resumption of flows on the southern leg of the Russia-to-Europe Druzhba pipeline additional calmed world provide worries. On Tuesday, Russian state oil pipeline monopoly Transneft(TRNF_p.MM) stated Ukraine had suspended flows to components of central Europe since early this month as a result of Western sanctions prevented it from receiving transit charges from Moscow.
In the meantime, bodily oil costs around the globe have begun to sag, reflecting easing issues over Russian-led provide disruptions and heightened worries a few potential world financial slowdown.
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Further reporting by Ahmad Ghaddar in London and Muyu Xu in Singapore; Modifying by Kim Coghill, Jason Neely, Barbara Lewis and David Gregorio
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