Brent futures gained 17 cents, or 0.24%, to $72.06 a barrel, while U.S. West Texas Intermediate crude futures added 14 cents, or 0.21%, at $68.26
Oil prices edged up on Wednesday on signs of near-term supply tightness but stayed near their lowest in two weeks, a day after OPEC downgraded its forecast for global oil demand growth in 2024 and 2025.
Brent futures gained 17 cents, or 0.24%, to $72.06 a barrel by 0420 GMT, while U.S. West Texas Intermediate crude futures added 14 cents, or 0.21%, at $68.26.
Crude oil prices edged higher as tightness in the physical market offset bearish sentiment on demand. Buyers in the physical market have been especially active, with any available cargoes being snapped up quickly, ANZ analysts said in a note.
But declining demand projections and weakness in major consumer China continued to weigh on market sentiment.
We may expect prices to consolidate around current levels for longer, according to Yeap Jun Rong, market strategist at IG, adding the recent attempt for a bounce was quickly sold into.
The absence of a more direct fiscal stimulus out of China has been casting a shadow on oil demand outlook, along with the prospects of higher US oil production with a Trump presidency and looming OPEC+’s plans for an output hike, Yeap said.
In its monthly report on Tuesday, the OPEC said world oil demand would increase by 1.82 million bpd in 2024, down from growth of 1.93 million barrels per day forecast last month, mostly due to weakness in China, the world’s biggest oil importer.
Oil prices settled 0.1% higher on Tuesday following the news, after dropping nearly 5% during the two previous sessions.
OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million barrels per day.
The International Energy Agency (IEA), which has a far lower view, is set to publish its updated forecast on Thursday.
