Oil holds near 4-month high, logs 3% weekly gain on IEA demand forecast, Ukraine attack; Brent at $83/bbl
₹6,730 per barrel on the Multi Commodity Exchange (MCX). Also Read: Oil market oversupplied with record-high US output, Brent seen at $87-$92 for 2024: ShareKhan's Mohammed Imran -On Thursday, the IEA raised its view on 2024 oil demand for a fourth time since November as Houthi attacks have disrupted Red Sea shipping. The IEA has adjusted its forecast for global demand growth upwards by 110,000 barrels per day (bpd), bringing the total to 1.3 million bpd.
-US energy firms this week added the biggest number of oil and natural gas rigs in a week since September, with the oil rig count also rising to its highest in six months, energy services firm Baker Hughes, said a Reuters report. -The oil and gas rig count, an early indicator of future output, rose by seven to 629 in the week to March 15. Baker Hughes said oil rigs rose six to 510 this week, their highest since September, while gas rigs rose one to 116, according to Reuters.
Also Read: OPEC, IEA emerge most divided on oil demand projections since 2008 -The gains this week have come despite the US dollar strengthening at its fastest pace in eight weeks. A stronger dollar makes crude more expensive for users of other currencies. Cuts in interest rates are seen as opportunity for demand growth in the US.
-In the US, some signs of slowing economic activity were seen as unlikely to spur the Federal Reserve to start cutting interest rates before June as other data on Thursday showed a larger-than-expected increase in producer prices last month. -US crude oil stockpiles also fell unexpectedly last week as refineries ramped up processing while gasoline inventories slumped as demand rose, said the Energy Information Administration (EIA). Lower interest rates cut consumer
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