International oil prices rise on optimistic demand outlook

WEB DESK: Global oil prices experienced an upward trend on Tuesday following an optimistic revision of demand growth forecasts by the International Energy Agency (IEA).

This positive momentum was reinforced by the guidance provided by Organisation of the Petroleum Exporting Countries (OPEC) the previous day.

The impact of the rising international oil prices on petrol prices in Pakistan remains uncertain, awaiting the forthcoming fortnightly review. The government is slated to announce new petrol and diesel prices on Thursday, November 16.

However, Brent crude futures saw an increase of 20 cents, equivalent to 0.2 per cent, reaching $82.72 a barrel by 0918 GMT.

Concurrently, US WTI crude futures rose by 21 cents, or 0.3 per cent, reaching $78.47.

Despite anticipated economic slowdowns in major economies, the IEA raised its oil demand growth forecasts for both the current year and the next.

The 2023 growth forecast was revised to 2.4 million barrels per day (bpd) from 2.3 million bpd, while the 2024 forecast was elevated to 930,000 bpd from 880,000 bpd.

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OPEC, attributing a recent drop in prices to speculators, made a slight upward adjustment to its forecast for 2023 global oil demand growth and maintained its relatively high projection for 2024.

PVM Oil analyst Tamas Varga noted, “The central bank of the oil market sees a sturdy economy resulting in strong demand, not just for its oil but globally, too,” regarding OPEC’s findings.

Oil prices had previously declined to their lowest levels since July last week, driven by concerns about potential decreases in demand from leading consumers in the United States and China.

Factors such as lower Chinese consumer prices in October, contractions in exports, and the US energy department’s plan to purchase 1.2 million barrels of oil to replenish the Strategic Petroleum Reserve could influence future demand.