The IMF raised its 2024 forecast for global economic growth, which caused crude oil prices to spike

The International Monetary Fund’s optimistic growth projection for the global economy in 2024 was met with strong performance from crude oil, which ended up 1.23% at 6478. Fears about the implications for the biggest user of crude oil in the world were stoked by this event.

Regarding supply, for the most of 2023, Iran was estimated to have exported 1.2 million to 1.6 million barrels per day (bpd) of crude oil, or a sizeable share of the world’s oil supply (between 1.1 and 1.5%). A decision on the group’s oil policy for April is not anticipated to be made during the OPEC+ meeting on February 1.

The Saudi oil ministry ordered Saudi Aramco, to keep its maximum sustainable capacity at 12 million barrels per day instead of raising it to 13 million barrels per day, which is a significant sign of the demand outlook going forward. The Energy Information Administration (EIA) reports that in the week ending January 19, U.S. crude oil stockpiles significantly decreased by 9.2 million barrels to 420.7 million barrels.

This fall was higher than anticipated, with a 2.1 million barrel decline in U.S. crude imports accounting for 1.2 million of the dip. Fuel demand, refinery, imports, and crude output were all impacted by the unfavorable winter weather.

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