Latest News

Oil trims losses on tight near-term supply

Oil costs edged up on Wednesday on signs of nearterm supply tightness however remained near their lowest in two weeks a day after OPEC devalued its projection for international oil demand development in 2024 and 2025.

Brent futures rose 13 cents or 0.18% to $72.02 a. barrel by 0205 GMT, and U.S. West Texas Intermediate (WTI) crude. futures gained 13 cents, or 0.19%, to $68.25.

Crude oil prices edged higher as tightness in the physical. market offset bearish sentiment as needed. Purchasers in the. physical market have been especially active, with any. available freights being snapped up quickly, ANZ analysts said. in a note.

But falling need forecasts and weakness in major. consumer China continued to weigh on market sentiment.

In its regular monthly report on Tuesday, the Company of. Petroleum Exporting Countries (OPEC) stated world oil demand would. increase by 1.82 million barrels daily (bpd) in 2024, down from. growth of 1.93 million bpd forecast last month, mainly due to. weakness in China, the worlds biggest oil importer.

Oil rates settled up 0.1% on Tuesday following the news,. after falling by about 5% during the 2 previous sessions.

OPEC also cut its 2025 worldwide demand growth estimate to 1.54. million bpd from 1.64 million bpd.

The IEA, which has a far lower view, is set to publish its. upgraded projection on Thursday.

The re-election of former President Trump is unlikely to. materially affect oil market basics over the near term, in. our view, Barclays analysts composed.

Drill, infant, drill: this is most likely to underwhelm as a. strategy to drive oil rates materially lower over the near. term considered that the stock of authorized permits really rose. under the Biden administration, the experts said.

Nevertheless, markets would still feel the impacts of a supply. disturbance from Iran or a more escalation in between Iran and. Israel, according to Barclays.

Donald Trump's expected Secretary of State choice, U.S. Senator Marco Rubio, is understood for his hardline position on Iran,. China, and Cuba. Tighter enforcement of sanctions on Iran could. disrupt global oil supply, while a tougher method to China. could further weaken oil demand worldwide's largest consumer.

2 U.S. central bankers said on Tuesday that rates of interest. are serving as a brake on inflation that is still above the 2%. mark, suggesting that the Federal Reserve would be open to. more interest rate cuts.

The Fed cut its policy rate last week by a quarter of a. percentage indicate the 4.50% -4.75% range. Rates of interest cuts. usually increase economic activity and energy demand.

U.S. weekly stock reports have been delayed by a day. following Monday's Veterans Day holiday. The American Petroleum. Institute market group information is due at 4:30 p.m. EST (2130 GMT). on Wednesday.

Analysts surveyed estimated typically that crude. inventories increased by about 100,000 barrels in the week to Nov. 8.

(source: Reuters)