Shafaq News/Oil prices edged up on Wednesday on signs of near-term supply tightness butremained near their lowest in two weeks, a day after OPEC downgraded itsforecast for global oil demand growth in 2024 and 2025.
Brentfutures rose 17 cents, or 0.24%, to $72.06 a barrel by 0420 GMT, while U.S.West Texas Intermediate (WTI) crude futures gained 14 cents, or 0.21%, at$68.26.
"Crudeoil prices edged higher as tightness in the physical market offset bearishsentiment on demand. Buyers in the physical market have been particularlyactive, with any available cargoes being snapped up quickly," ANZ analystssaid in a note.
But fallingdemand projections and weakness in major consumer China continued to weigh onmarket sentiment.
"We mayexpect prices to consolidate around current levels for longer," said YeapJun Rong, market strategist at IG, adding the recent attempt for a bounce wasquickly sold into.
"Theabsence of a more direct fiscal stimulus out of China has been casting a shadowon oil demand outlook, coupled with the prospects of higher US oil productionwith a Trump presidency and looming OPEC+'s plans for an output raise,"Yeap added.
In itsmonthly report on Tuesday, the Organization of Petroleum Exporting Countries(OPEC) said world oil demand would rise by 1.82 million barrels per day (bpd)in 2024, down from growth of 1.93 million bpd forecast last month, mostly dueto weakness in China, the world's biggest oil importer.
Oil pricessettled up 0.1% on Tuesday following the news, after falling by about 5% duringthe two previous sessions.
OPEC alsocut its 2025 global demand growth estimate to 1.54 million bpd from 1.64million bpd.
TheInternational Energy Agency, which has a far lower view, is set to publish itsupdated forecast on Thursday.
"The re-electionof former President Trump is unlikely to materially affect oil marketfundamentals over the near term, in our view," Barclays analysts wrote.
"Drill,baby, drill: this is likely to underwhelm as a strategy to drive oil pricesmaterially lower over the near term" given that the stock of approvedpermits actually rose under the Biden administration, the analysts said.
OPEC alsocut its 2025 global demand growth estimate to 1.54 million bpd from 1.64million bpd.
TheInternational Energy Agency, which has a far lower view, is set to publish itsupdated forecast on Thursday.
"There-election of former President Trump is unlikely to materially affect oilmarket fundamentals over the near term, in our view," Barclays analystswrote.
"Drill,baby, drill: this is likely to underwhelm as a strategy to drive oil pricesmaterially lower over the near term" given that the stock of approvedpermits actually rose under the Biden administration, the analysts said.
(Reuters)