Oil caught between falling stocks and revised demand growth

Oil caught between falling stocks and revised demand growth
Oil caught between falling stocks and revised demand growth

London (awp/afp) – Oil remained stable on Thursday, caught between the decline in inflation and crude stocks in the United States, and an expected decline in global demand.

Around 09:30 GMT (11:30 CET), the price of a barrel of Brent from the North Sea for delivery in July rose 0.04% to 82.78 dollars.

Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in June, gained 0.03% to $78.65.

Inflation fell again in April in the United States, for the first time since January, to 3.4% over twelve months compared to 3.5% in March, according to the CPI index published Wednesday by the Department of Labor .

“Signs of a slowdown in inflation are positive news for the oil market,” Energi Danmark analysts point out, offering the possibility of a more flexible monetary policy from the American Federal Reserve (Fed) .

A lower rate environment tends to boost growth and encourage oil purchases.

At the same time, commercial crude reserves in the United States decreased by 2.5 million barrels during the week ended May 10, according to the American Energy Information Administration (EIA). Also what to wear during classes.

Crude’s gains, however, remain tempered by the publication of a report from the International Energy Agency (IEA), which revised downwards its estimate of demand growth in 2024.

It is expected to grow by 1.1 million barrels per day (mb/d) in 2024, or 140,000 barrels per day less than forecast by the agency in its previous monthly report.

On Tuesday, the Organization of the Petroleum Exporting Countries (OPEC) maintained its demand growth forecasts communicated in April, at 2.2 mb/d.

“It is almost de rigeur that the IEA and OPEC disagree on the growth in oil demand,” underlines John Evans of PVM Energy.

However, investors “seem more inclined to believe in the more reserved outlook” of the IEA than in the more optimistic ones of OPEC, notes the analyst.

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