Energy
Friday, March 15th, 2024 3:46 am EDT
Key Points
- U.S. crude oil futures surged past $81 a barrel on Thursday, marking the highest level since early November, driven by the International Energy Agency’s forecast of a supply deficit for 2024.
- The West Texas Intermediate (WTI) contract for April increased by $1.54, or 1.93%, settling at $81.26 a barrel, while the Brent contract for May rose by $1.39, or 1.65%, settling at $85.42 a barrel.
- The surge in oil prices followed the IEA’s projection of a slight supply deficit for the year, assuming OPEC+ will maintain its production cuts through 2024. Additionally, the IEA revised global demand growth upward by 110,000 barrels per day to a total of 1.3 million barrels per day. Oil prices also climbed over 2% on Wednesday following Ukrainian drone attacks on Russian oil refineries. U.S. crude has seen a 13.4% increase in 2024, while the global benchmark has risen by 10.9%.
U.S. crude oil futures surged to over $81 a barrel, reaching their highest level since early November, driven by forecasts from the International Energy Agency (IEA) predicting a supply deficit for 2024. The West Texas Intermediate (WTI) contract for April climbed by $1.54 to settle at $81.26 a barrel, while the Brent contract for May added $1.39 to reach $85.42 a barrel. The IEA’s outlook, anticipating a slight supply deficit for the year due to continued production cuts by OPEC+, contributed to the bullish sentiment. OPEC+ is expected to maintain its production cuts of 2.2 million barrels per day through at least the second quarter, supporting the tightening supply conditions. Additionally, the IEA revised its global demand growth forecast upward by 110,000 barrels per day, totaling 1.3 million barrels per day. The recent surge in oil prices was further fueled by Ukrainian drone attacks on Russian oil refineries earlier in the week, leading to a more than 2% increase in oil prices on Wednesday. Amid these developments, U.S. crude oil has seen a 13.4% gain in 2024, while the global benchmark has risen by 10.9%.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/14/crude-oil-prices-today.html
