Yesterday, crude oil rose 0.89% to close at 6934 on upbeat demand projections from OPEC and the International Energy Agency (IEA). OPEC predicted that global oil consumption will climb by 2.25 million bpd in 2024, which is a little less than the 2.44 million bpd increase predicted for the current year. Prices have also been supported by production cuts in Saudi Arabia and Russia as well as tensions between Russia and Ukraine.
For the following year, the International Energy Agency (IEA) changed its forecasts for the rise of oil demand, showing a slower rate than originally predicted. The shift is explained by the weak macroeconomic environment, a slowing post-pandemic recovery, and the rising popularity of electric vehicles. The growth rate is now anticipated to slow down to 1 million barrels per day (bpd) in 2024, according to the IEA’s August monthly oil market report.
This amount is 150,000 bpd less than what the organization had anticipated. The IEA highlighted the persistently difficult global economic environment characterized by rising interest rates and more stringent bank loans, which is further constraining enterprises already struggling with sluggish manufacturing and commerce. The IEA continues to forecast an increase in world oil consumption of 2.2 million bpd for the current year, 2023.
Technically, the market is experiencing new buying because open interest increased by 5.87% to settle at 6928 while prices increased by 61 rupees. Currently, crude oil is receiving support at 6850, and a move below that level could result in a test of the 6766 level. On the other hand, resistance is now likely to be seen at 6982, and a move above could result in prices testing 7030.
