WTI Crude rises despite contrasting 2024 demand forecasts by OPEC and IEA

Futures on US West Texas Intermediate Crude Oil held ground above $83 per barrel on Friday despite a divergence between 2024 demand growth forecasts issued by the OPEC group and the International Energy Agency.

WTI Futures hit highs unseen since November 2022 on Thursday, while Brent Futures – their highest level since January, amid a sustained rally over the past 1 1/2 months.

The Organization of Petroleum Exporting Countries (OPEC) announced yesterday that it forecast an increase in global oil demand by 2.25 million barrels per day in 2024 and by 2.44 million barrels per day this year.

OPEC said that solid economic growth amid continued improvements in China would bolster oil consumption in 2024.

OPEC did not introduce any changes to its forecasts compared to July.

Meanwhile, the International Energy Agency (IEA) said on Friday that OPEC+ supply cuts could sharply reduce global inventories over the rest of 2023, potentially pushing oil prices even further up.

In case OPEC+ members maintain their current targets, oil inventories could decrease by 2.2 million barrels per day during the third quarter and by 1.2 million barrels per day during Q4.

“Deepening OPEC+ supply cuts have collided with improved macroeconomic sentiment and all-time high world oil demand,” the IEA said in its monthly report.

However, the energy watchdog also said it now forecast global oil demand growth to slow considerably to 1 million barrels per day in 2024, while citing a lackluster macroeconomic environment.

The new demand growth forecast has been revised down by 150,000 barrels per day compared to July and came in contrast with the OPEC forecast.

As of 12:54 GMT on Friday WTI Crude Oil Futures for September delivery were gaining 0.65% to trade at $83.36 per barrel.

At the same time, Brent Oil Futures for October delivery were gaining 0.66% on the day to trade at $86.97 per barrel.