Brent on course for over 3% weekly loss

Front-month ICE Brent has declined by $2.01/bbl on the day, to $83.53/bbl at 09.00 GMT.

PHOTO: Getty Images

Upward pressure:

The International Energy Agency (IEA) and OPEC have raised their global oil demand growth forecasts for this year. The IEA has forecast global oil demand to increase by 2 million b/d, while OPEC has estimated it to rise by 2.3 million b/d this year.

According to the IEA, the core OPEC group produced 29.06 million b/d of oil in January, which was 830,000 b/d lower than its target. Russia, a member of the broader OPEC+ group, produced 9.77 million b/d in January, falling short of its target of 10.48 million b/d.

OPEC+ plans to continue its current policy of cutting oil production by 2 million b/d until the end of the year, Prince Abdulaziz bin Salman Minister of Energy of Saudi Arabia said.

Downward pressure:

A spike in monthly inflation and strong retail sales data in the US have prompted concerns that the US Federal Reserve (Fed) will continue raising interest rates to curb consumer spending.

Commercial US crude stocks grew by 16.28 million bbls on the week, to the highest level since June 2021, according to the US Energy Information Administration. This year's record crude production is expected to drive a rebound in US crude exports, according to OPEC.

By Konica Bhatt and Nitin Sharma

Please get in touch with comments or additional info to news@engine.online