The rise in oil prices is attributed to OPEC demand estimates, geopolitical tensions, and U.S. production. Oil prices increased on Thursday, fueled by OPEC’s anticipation of relatively strong global demand for oil over the next two years. The market is also looking at disruptions in U.S. oil production amid a cold spell and tensions in the Middle East. In its monthly report, OPEC stated that global oil demand is expected to rise significantly from 1.85 million barrels per day in 2025 to 106.21 million barrels per day. For 2024, OPEC anticipates a daily demand growth of 2.25 million barrels, unchanged from its December projections.
Oil prices continue to fluctuate within a range, as seen over the past two weeks, with market participants struggling to balance mixed dynamics of supply and demand amidst prevailing geopolitical tensions. The unexpected increase in U.S. crude inventories and challenges in China’s economic recovery still cast shadows on oil demand expectations, although the market remains cautious about geopolitical developments. Meanwhile, North Dakota, the largest oil-producing state in the U.S., reported a decrease in oil production to 650,000 to 700,000 barrels per day, less than half of its usual output, due to temperatures dropping below zero Fahrenheit (-18 degrees Celsius), according to the state.
The U.S. government’s oil inventory data is scheduled for release at 11 a.m. Eastern Time (1600 GMT) on Thursday. Crude inventories locally increased by 480,000 barrels last week, according to market sources citing the American Petroleum Institute’s numbers on Wednesday.
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Shady Fouad is a technical analyst at LDN Company
Shady's strategic vision in the currency markets is reinforced by more than fifteen years of trading experience, which enables him to blend economic and technical analyzes with high efficiency, and find the best investment ideas for traders.
