Oil rises as IEA hikes 2022 demand growth forecast

LONDON, Aug 11 (Reuters): Oil prices rose by over 1% on Thursday after the International Energy Agency raised its oil demand growth forecast for this year as soaring gas prices drive some consumers to switch to oil.

Brent crude futures gained $1.04, or 1.1%, to $98.44 a barrel by 0949 GMT, while U.S. West Texas Intermediate crude futures rose $1.03, or 1.1%, to $92.96.

"Natural gas and electricity prices have soared to new records, incentivising gas-to-oil switching in some countries," the Paris-based agency said in its monthly oil report, in which it raised its outlook for 2022 demand by 380,000 barrels per day (bpd). read more

A rise in U.S. oil inventories last week and the resumption of crude flows on a pipeline supplying central Europe capped further price gains, however.

U.S. crude oil stocks rose by 5.5 million barrels in the most recent week, the U.S. Energy Information Administration said, more than the expected increase of 73,000 barrels.

Gasoline product supplied rose in the most recent week to 9.1 million barrels per day, though that figure still shows demand down 6% over the past four weeks compared with the year-ago period.

The premium for front-month WTI futures over barrels loading in six months' time was pegged at $4.38 a barrel on Thursday, the lowest in four months, indicating easing tightness in prompt supplies.

The resumption of flows on the southern leg of the Russia-to-Europe Druzhba pipeline further calmed market worries over global supply.