The global oil demand: Oil prices have clearly risen during recent trading sessions,
marking a monthly gain in January of 6.7% compared to December.
Here are the most significant events and factors that have impacted the markets.
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Forecasts by OPEC and the IEA for global demand
Forecasts by OPEC and the IEA for global demand
They still expect global demand to increase by 2.2 million barrels per day,
reaching a total expected demand of 104 million barrels in 2024.
This figure is considered a record, based on their expectations for global economic growth of 2.7%,
up from last month’s forecast of 2.6%.
Demand from China, the world’s second-largest oil importer,
is also expected to rise, despite economic challenges and no signs of recovery yet.
They also pointed out that the US economy is strong,
and demand will increase starting from the second quarter of the current year.
Saudi Aramco
The CEO of Saudi Aramco stated that the expected demand for the current year
could reach 1.5 million barrels per day. As for the IEA,
it expects demand to be at 1.2 million barrels per day,
seeing the first quarter of the current year as a period of weak demand
and expecting a rise in demand in the coming period.
On the other hand, attacks on Russian refineries, tensions in the Middle East,
and disruptions in navigation in the Red Sea have increased concerns
about the impact on supplies and supported the rise in oil prices.
Rise in US Inventories
However, the increase in floating crude oil inventories by +8.3% is considered a negative factor for oil prices,
as inventories accumulate and affect the balance between supply and demand.
Traders are awaiting the US inventory report today, which will impact oil markets,
after rising by more than 5 million barrels last week, but the markets did not pay much attention.
Oil markets are expected to see volatility in the coming period,
but in general, factors supporting a significant rise in oil prices are more pronounced.
Current oil prices: West Texas Intermediate (WTI) crude oil prices reached $77.90 per barrel,
while Brent crude oil prices rose to $82.85 per barrel.
The global oil demand