Oil prices held onto two days of gains after industry data pointed to a decline in U.S. crude inventories ahead of a report from the International Energy Agency on market outlook.
Brent crude futures were trading near $82 a barrel after rising about 3% at the start of the week, while West Texas Intermediate crude was above $78. The American Petroleum Institute reported that U.S. crude inventories fell by 2.4 million barrels last week, according to people familiar with the data.
Oil prices rebounded this week after selling off sparked by OPEC+’s plan to restore some output this year, adding to strong supply from outside the group. The United States forecast on Tuesday that its output in 2024 will rise more than previously forecast to a new record.
Still, OPEC remains upbeat about the outlook. The group reiterated its forecast for demand to pick up in the second half of this year, according to a monthly report released Tuesday. The estimates were more optimistic than others in the industry.
“We see a significant deficit in the third quarter, which suggests that prices still have room to run higher,” said Warren Patterson, head of commodity strategy at ING Group NV in Singapore. “The oil market will be tight in the short term.”
The International Energy Agency will provide a snapshot of supply and demand forecasts later on Wednesday, which will be followed by a Federal Reserve interest rate decision.
