{"id":8187,"date":"2023-10-12T12:19:19","date_gmt":"2023-10-12T12:19:19","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=8187"},"modified":"2023-10-12T12:19:35","modified_gmt":"2023-10-12T12:19:35","slug":"oil-tracks-global-equities-higher-iea-demand-downgrade-weighs","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/8187\/","title":{"rendered":"Oil tracks global equities higher, IEA demand downgrade weighs"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil prices rose about 1% on Thursday, reversing earlier falls, on expectations that U.S. interest rates had peaked, but a lower demand growth forecast for next year from the International Energy Agency and higher U.S. inventories limited further gains.<\/p>\n

Brent futures rose $1.01, or 1.20%, to $86.83 a barrel at 0952 GMT, while U.S. West Texas Intermediate crude gained 73 cents, or 0.90%, to $84.22 a barrel.<\/p>\n

World shares rose\u00a0and the dollar and bond market borrowing costs held steady ahead of U.S. inflation data and European Central Bank meeting minutes that will add to the hotly-contested debate on where interest rates are heading.<\/p>\n

Lower U.S.\u00a0bond yields\u00a0are stoking risk appetite, which in turn is supporting equities and oil, UBS analyst Giovanni Staunovo said.<\/p>\n

“Both the Saudi energy minister Prince Abdulaziz and Russia’s deputy prime minister Novak reiterating their\u00a0ongoing collaboration\u00a0to balance oil markets are helping,” he added.<\/p>\n

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Saudi Energy Minister Prince Abdulaziz bin Salman said in a Russian TV interview\u00a0that it was necessary to be “proactive” on bringing stability to the oil market, which had recently been hit by concerns that the Israel-Hamas war could disrupt supplies from the Middle East.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Russian Deputy Prime Minister Alexander Novak also reassured markets, saying the current oil price factored in the Middle East conflict and showed that the risk from it was not high.<\/p>\n

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Meanwhile, the IEA lowered\u00a0its oil demand growth forecast for 2024, suggesting harsher global economic conditions and progress on energy efficiency will weigh on consumption.<\/div>\n<\/div>\n<\/div>\n

The agency now sees 2024 demand growth at 880,000 barrels per day (bpd), compared with its previous forecast of 1 million bpd.<\/p>\n

However, it raised its 2023 demand forecast to 2.3 million bpd from a forecast of 2.2 million.<\/p>\n

U.S. data which showed a big build in crude and gasoline inventories tempered the rally.<\/p>\n

U.S. crude oil stockpiles swelled by about 12.9 million barrels, according to market sources citing American Petroleum Institute figures on Wednesday.<\/p>\n

This was much higher than the 500,000-barrel gain expected by analysts in a Reuters poll.<\/p>\n

Gasoline inventories also rose by 3.6 million barrels, the data showed, a stark contrast from the 800,000-barrel drop expected by analysts and continued to stoke worries of slowing fuel demand in the U.S.<\/p>\n

Markets will be awaiting further inventory data cues from the U.S. Energy Information Administration (EIA) due later in the day at 1500 GMT.<\/p>\n

Updated on