Oil prices rose on Tuesday, but forecasts of a slower than expected recovery in global fuel demand due to the coronavirus pandemic weighed.
As of press time Tuesday afternoon, PREMIUM TIMES' check showed that the barrel of West Texas Intermediate (WTI) was trading at $37.86, gaining 1.61 per cent Tuesday. Both contracts rose by more than 2% on Tuesday.
Oil prices rose on Wednesday, extending gains from the previous session, as a hurricane disrupted USA offshore oil and gas production and an industry report showed a big drop in US crude stockpiles.
The agency said commercial oil stocks in the developed world hit an all-time high of 3.225 billion barrels in July, and cut its forecast for implied stock draws for the second half of the year.
World oil demand will tumble by 9.46 million bpd this year, the Organisation of the Petroleum Exporting Countries said in a monthly report on Monday, more than the 9.06 million bpd decline OPEC expected a month ago.
Earlier in the session, the International Energy Agency (IEA) trimmed its 2020 outlook by 200,000 barrels per day (bpd) to 91.7 million bpd, citing caution about the pace of economic recovery.
OPEC had cut back on its global oil demand forecast, for each quarter to the end of next year, by an average of 768,000 bpd.
Investors look to the joint ministerial monitoring committee (JMMC) by OPEC+ on Thursday to discuss compliance with deep cuts in production, although analysts do not expect further reductions to be made despite Brent prices falling below $40 per barrel in recent days. More than a quarter of United States offshore oil and gas production was shut and key exporting ports were closed as the storm's trajectory shifted east toward western Alabama, sparing some Gulf Coast refineries from high winds. OPEC downgraded its oil demand forecast and BP said demand might have peaked in 2019.