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Brent crude futures were up 76 cents, or 0.9%, to $82.68 a
barrel at 1005 GMT, while U.S. West Texas Intermediate (WTI)
crude futures were up 86 cents, or 1.1%, to $78.76.
Both contracts rose by $1 or more earlier in the session.
The International Energy Agency (IEA), the U.S. Energy
Information Administration (EIA), and producer group the
Organization of the Petroleum Exporting Countries (OPEC) have
updated their views on the global oil demand-supply balance for
2024.
Their reports imply limited downside for prices in the second
half of the year because all three predict declines in global
oil inventories, Tamas Varga of oil broker PVM told Reuters.
Those views were reinforced by industry data on Tuesday showing
U.S. crude oil inventories fell more than expected last week.
On Wednesday, although the IEA trimmed its 2024 oil demand
growth forecast to just under 1 million barrels per day (bpd),
citing sluggish consumption in developed countries, the numbers
suggest it agrees with OPEC and the EIA that there will be stock
draws in the second half of the year, PVM's Varga said.
The IEA also predicted oil demand growth would plateau at 105.6
million bpd by 2029, and be well eclipsed by supply - a full 8
million bpd above projected demand - by 2030.
The IEA's view for next year, and up to the 2030s, is bleak,
noted Varga.
"But if there are stocks draws for the second half of this year,
then why would we expect a significant fall on prices in the
anticipation that there will be a glut by 2030?"
On Tuesday, the EIA raised its 2024 world oil demand growth
forecast to 1.10 million bpd, while OPEC stuck with its 2024
forecast of 2.25 million bpd.
Prices had eased more than 2% last week after OPEC and its
allies said they would phase out output cuts starting October.
Important data is expected on Wednesday.
Inventory data from the EIA, the U.S. government's statistics
arm, is due at 10:30 a.m. EDT (1430 GMT).
Further hints on interest rate policy will come from the U.S.
Consumer Price Index report before the bell, and the U.S.
central bank's policy announcement is due later in the day.
(Reporting by Natalie Grover in London, Arathy Somasekhar in
Houston and Emily Chow in Singapore; Editing by Miral Fahmy and
Mark Potter)
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