Brent gains after EIA raises oil demand forecast
The front-month ICE Brent contract has gained by $0.71/bbl on the day, to trade at $66.01/bbl at 09.00 GMT.
IMAGE: Oil storage units. Getty Images
Upward pressure:
Brent crude has gained upward momentum after the US Energy Information Administration (EIA) slightly raised its 2025 global oil demand growth forecast.
The US energy agency previously projected oil demand to grow by 900,000 b/d this year. It now forecasts demand growth at 1.1 million b/d in both 2025 and 2026, to average around 104 million b/d and 105 million b/d, respectively.
Most of the demand growth will be driven by non-OECD countries including China and India, the US agency said.
The EIA’s modest upward revision “may be prompting some bargain-hunting buying [in the oil market],” remarked VANDA Insights’ founder Vandana Hari.
Downward pressure:
Brent’s rally has been capped after the American Petroleum Institute (API) reported a 2.8 million-bbl surge in US crude stocks in the week ending 3 October, higher than analysts' expectations of a 2.3 million-bbl build.
A rise in US crude stocks typically signals weaker demand for oil and can exert downward pressure on Brent's price.
By Aparupa Mazumder
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