OPEC and the Department of Energy both predict stable demand this year, and on Wednesday, U.S. crude oil increased by more than 1%, continuing this week’s surge.
From 900,000 barrels per day to 1.1 million barrels per day, the Department of Energy increased its prediction for growth in world consumption.
Given that global output is predicted to increase by 800,000 bpd in 2024, the higher demand suggests a supply shortage.
Morgan Stanley commodity strategist Martijn Rats sent out a note to investors stating, “In the short term, the oil market is likely to tighten.” The third-quarter shortage of 1.2 million barrels per day, as projected by the investment bank, may drive Brent prices to $86 per barrel.
The current energy prices are as follows:
West Texas Intermediate futures for July closed at $78.86, up 1.23%, or 96 cents. US oil has increased 10% so far this year.
Brent August contract:
$82.80/barrel, up 1.06%, or 87 cents. As of now, the worldwide benchmark is 7.5% ahead.
RBOB Gasoline contract for July:
$2.43 per gallon, 1.12% increase. Petrol prices have increased by 15.9% so far this year. Natural gas July contract: down 1.34% to $3.09 per thousand cubic feet. Gas has increased by 22.8% so far this year.
Source (CNBC)
