Markets

The US Energy Information Administration, the International Energy Agency, and OPEC provide insights into global oil demand trends.

UK consultancy Wood Mackenzie highlighted significant risks facing the global oil refining industry, with over 20% of the global refining capacity at risk of closure.

Brent crude surged above $85/bbl propelled by multiple factors including dwindling US inventories, an optimistic outlook from the IEA, and disruptions to Russian oil facilities by Ukrainian drones.

OPEC maintains its optimistic stance on oil demand growth, projecting a steady increase for this year and beyond, driven primarily by China, India, and the Middle East.

The Energy Information Administration (EIA) has revised its forecast for Brent crude oil prices, anticipating an average of $87/b for this year and $85/b for the next.

Oil prices are displaying resilience, marked by a second consecutive monthly gain as OPEC+ extends supply curbs until Q2 2024, contributing to WTI's substantial $7/b increase in Feb.

In a strategic move, the OPEC+ coalition, comprising eight nations, has opted to prolong voluntary production cuts until the end of Q2 2024.

Goldman Sachs has revised its summer peak Brent Crude price forecast to $87/bbl, driven by faster-than-anticipated land inventory drawdowns resulting from seaborne trade disruptions in the Red Sea.

Saudi Arabia’s state-owned company’s Chief Financial Officer, Ziad Al-Murshed, has highlighted a concerning trend, stating that the natural decline in operating oilfields is resulting in a loss of 6MM b/d of global oil production annually.

China, the US, and Europe are intensifying efforts to rebuild oil inventories, capitalizing on lower prices and concerns about shipping disruptions in the Middle East.