Crude oil rises on OPEC’s statement that market fundamentals are still robust

OPEC’s claim that market fundamentals are still strong and that financial market speculators are to blame for the recent price decrease drove crude oil prices to close slightly lower, down -0.23% at 6508. Notably, the buy came at an average cost of $77.57 per barrel. The U.S. Energy Department announced that 1.2 million barrels of oil had been purchased to restock the Strategic Petroleum Reserve.

OPEC held speculators accountable for the price decline, holding onto a reasonably high estimate for 2024 but making a little adjustment to its expectation for the rise of the world’s oil consumption in 2023. The International Energy Agency (IEA) increased its oil demand growth predictions for this year and the following one despite worries about economic growth and demand, which were bolstered by OPEC production restrictions and Middle East hostilities.

The IEA acknowledges robust September demand from China and stability in U.S. delivery, but predicts a slowing in overall economic and oil demand growth in 2023. Anticipations for 2024 rely on the expected reduction of interest rates and the recent drops in the price of crude oil.

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