Petroleum prioces rebounded on Wednesday on short-covering after prices fell near a two-week low in the prior session on OPEC’s demand forecast cut, while the dollar hit a seven-month high, capping crude’s gains.
Brent crude futures rose 39 cents, or 0.54%, to close at $72.28 U.S. a barrel, while U.S. West Texas Intermediate crude futures gained 31 cents, or 0.46%, to settle at $68.43.
The benchmarks closed at their lowest level in nearly two weeks on Tuesday after the Organization of the Petroleum Exporting Countries lowered its global oil demand growth forecasts for 2024 and 2025 amid demand concerns in China.
OPEC cited weakness in China, India, and other regions for its decision, which marked the producer group’s fourth straight downward revision for 2024.
The International Energy Agency, which has a much lower demand growth forecast than OPEC’s, is set to publish its updated estimate on Thursday.
President Trump’s expected pick for secretary of state, Senator Marco Rubio, could be bullish for prices as his hawkish view on Iran could see sanctions enforced, potentially removing 1.3 million bpd from global supply, according to one expert.
The American Petroleum Institute’s weekly inventory data, due at 4:30 p.m. EST was also in focus, with analysts polled by Reuters expecting a 100,000-barrel rise in crude stocks last week. Government data is due on Thursday at 11 a.m. Both reports are delayed a day due to Monday’s Veterans Day holiday.
