|
The
International Energy Agency (IEA) also warned that output cuts
announced by OPEC+ producers could exacerbate an oil supply
deficit and hurt consumers.
Brent crude futures were up 22 cents, or 0.26%, to $86.31 per
barrel at 1046 GMT. West Texas Intermediate crude futures (WTI)
rose 21 cents, or 0.26%, to $82.37.
Both contracts were set to post a fourth consecutive week of
gains amid easing concerns over a banking crisis last month and
the surprise decision last week by the Organization of the
Petroleum Exporting Countries (OPEC) and other producers led by
Russia, a group known as OPEC+, to further cut output.
Brent is set to post a 1.4% weekly gain, while WTI was up 2%.
In its monthly report on Friday, the IEA said world oil demand
is set to grow by 2 million barrels per day (bpd) in 2023 to a
record 101.9 million bpd, driven in most part by stronger
Chinese consumption after the lifting of COVID restrictions.
Jet fuel demand accounts for 57% of the 2023 gains, it said.
But OPEC on Thursday flagged downside risks to summer oil demand
as part of the backdrop for its decision to cut output by a
further 1.16 million bpd.
The IEA said the OPEC+ decision could hurt consumers and global
economic recovery.
"Consumers confronted by inflated prices for basic necessities
will now have to spread their budgets even more thinly," the IEA
said in its monthly oil report.
"This augurs badly for the economic recovery and growth," it
added.
The IEA said it expected global oil supply to fall by 400,000
bpd by the end of the year, citing an expected production
increase of 1 million bpd from outside of OPEC+ beginning in
March versus a 1.4 million bpd decline from the producer bloc.
The U.S. dollar index was trading at roughly a one-year low,
after U.S. consumer and producer price data releases this week
raised expectations that the Fed was approaching the end of its
rate hiking cycle.
The weakening greenback makes dollar-denominated oil cheaper for
investors holding other currencies, boosting demand.
(Additional reporting by Andrew Hayley in Beijing and Trixie Yap
in Singapore; editing by Mark Potter and Jason Neely)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
