Oil prices rise on strong IEA

LONDON, Jan 18 (Reuters/Xinhua): Oil prices rose on Thursday as the IEA joined producer group OPEC in forecasting relatively strong growth in global oil demand this year, with price impetus also coming from disruption to US output and geopolitical risks in the Middle East.
Brent crude futures gained 37 cents, or 0.5 per cent, to $78.25 a barrel by 1005 GMT while US West Texas Intermediate crude futures rose 55 cents, or 0.8 per cent, to $73.11.
The International Energy Agency (IEA) now expects oil demand to grow by 1.24 million barrels per day (bpd) in 2024, up 180,000 bpd from its previous projection, its monthly report said. The agency cited improved economic growth and lower crude prices in the fourth quarter.
The Organization of the Petroleum Producing Countries (OPEC) had said on Wednesday that it expected demand growth of 2.25 million bpd this year, unchanged from its forecast in December. The producer group also said oil demand is expected to rise by a robust 1.85 million bpd in 2025 to 106.21 million bpd.
The IEA's executive director, Fatih Birol, told the Reuters Global Markets Forum on Wednesday that he expects oil markets to be in a "comfortable and balanced position" this year despite Middle East tensions, rising supply and a slowing demand growth outlook.
Oil's range-bound trading in recent days reinforces the narrative that investors are shrugging off concern that tankers may be at risk from attacks in the Red Sea, said Ehsan Khoman, analyst at bank MUFG.
Attacks by Yemen-based Houthi militants against ships in the Red Sea have forced many companies to divert cargoes around Africa, adding to journey times and costs. The US on Wednesday conducted another round of strikes against Houthi targets in Yemen in retaliation for the attacks on shipping.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) on Wednesday forecast "robust" global oil demand growth of 1.8 million barrels per day (bpd) in 2025, backed by strong global economic recovery and "continued solid economic activity in China."
OPEC predicted in its first assessment of next year's oil demand levels, which was included in its monthly oil market report published on the day.