OPEC+ raises forecast for oil demands next year

The Organisation of the Petroleum Exporting Countries and allies, including Russia, collectively known as OPEC+, has raised its forecast for oil demand next year, in a move that might help to build a case for raising output.

Brent crude for November delivery gained 18 cents, or 0.3 per cent to touch 71.81 dollars a barrel, U.S. West Texas Intermediate (WTI) crude for October was up 17 cents, or 0.3 per cent at $68.67.

U.S. President Joe Biden’s administration has urged OPEC+ to boost output to tackle rising gasoline prices that it views as a threat to the global economic recovery.

“One foregone conclusion is that they will not add additional barrels as per Washington’s recent request. Nor will they press the pause button on easing supply curbs,” said Stephen Brennock of oil broker PVM.

Prices were also supported by a U.S. industry report showing that crude inventories fell more than expected last week, though much U.S. refinery capacity remains offline in the wake of Hurricane Ida.

U.S. crude stocks fell by 4 million barrels for the week to August 27, according to two market sources, citing American Petroleum Institute (API) figures.

Ahead of the weekly Energy Information Administration report, analysts estimated crude stocks would drop by 3.1 million barrels.

However, U.S. crude prices are expected to remain under pressure as offshore oil and gas production in the Gulf of Mexico gradually recovers, though refinery operations are likely to take longer to return to normal, analysts say.