Oil prices climb on 2024 stock forecasts

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FE Team | Published: June 12, 2024 23:55:19

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LONDON, June 12 (Reuters) : Oil prices rose more than 1 per cent on Wednesday after three key forecasters predicted that global oil inventories would fall in the second half of 2024, while U.S. inflation data solidified expectations for a Federal Reserve interest rate cut by September.
Brent crude futures were up $1.33, or about 1.6 per cent, to $83.25 a barrel at 1338 GMT, with U.S. West Texas Intermediate (WTI) crude futures also up by $1.33, or roughly 1.7 per cent, to $79.23.
Prices had eased more than 2 per cent last week after OPEC and its allies said they would phase out output cuts starting from October.
The International Energy Agency (IEA), the US Energy Information Administra-tion (EIA) and the Organization of the Petroleum Exporting Countries (OPEC) have this week updated their views on the global oil demand-supply balance for 2024.
Their reports imply limited downside for prices in the second half of the year with all three predicting declines in global oil inventories, and the IEA seeing a larger depletion than the other two, said Tamas Varga of oil broker PVM.
Those views were echoed in industry data on Tuesday showing U.S. crude oil inventories fell more than expected last week.
U.S. consumer price data, published on Wednesday, reinforced expectations of a Fed rate cut by September. The U.S. central bank's policy announcement is due later in the day with no change in rates expected just yet.