Oil rises on healthy demand, supply expectations after OPEC report
By Emily Chow and Trixie Yap
SINGAPORE (Reuters) -Oil prices inched up on Tuesday on expectations of healthy market fundamentals, following an OPEC report saying demand remains strong, and concerns that supplies might be disrupted as the U.S. cracks down on Russian oil exports.
Brent crude futures gained 23 cents, or 0.28%, to $82.75 a barrel by 0722 GMT. U.S. WTI crude futures climbed 21 cents, or 0.27%, to $78.47 a barrel.
«Following the heavy sell-off in the market over the last three weeks, oil has managed to find some support… While fundamentals may not be as bullish as initially thought, they are still supportive, with the market likely to be in deficit for the remainder of this year,» ING analysts said in a email note.
«The surplus we see early next year could even be erased if the Saudis roll over their additional voluntary supply cuts,» they added.
In its monthly report, the Organization of the Petroleum Exporting Countries blamed speculators for a recent drop in prices. It also slightly raised its 2023 forecast for growth in global oil demand and stuck to its relatively high 2024 prediction.
Last week, oil prices slid to their lowest level since July, hurt by concerns that demand could wane in in top oil consumers U.S. and China. Chinese consumer prices swung lower in October to levels not seen since the COVID-19 pandemic and exports for the month contracted more than forecast.
The U.S. energy department plans to buy 1.2 million barrels of oil to help replenish the Strategic Petroleum Reserve after selling the largest amount ever from the stockpile last year, which could further buoy demand.
A U.S. crackdown on Russian oil exports could potentially disrupt supply, supporting prices further.
The U.S.
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