Oil prices rose on Friday as geopolitical tensions and oil output disruptions in the U.S., the world’s biggest producer, caused by cold weather overshadowed concerns about slow Chinese demand growth and forecasts for ample supply.
Brent crude futures rose 2 cents to $79.12 a barrel by 0715 GMT, while U.S. West Texas Intermediate crude futures (WTI) were up 13 cents to $74.21.
Both benchmarks climbed about 2 per cent on Thursday as the International Energy Agency (IEA) joined the Organization of the Petroleum Exporting Countries (OPEC) in forecasting strong growth in global oil demand. This week, WTI is on track to rise about 2 per cent while Brent is set to gain 1 per cent.
On Thursday, the IEA again raised its 2024 global oil demand growth forecast, though its projection remains lower than OPEC’s expectations, and said the market looked well supplied because of strong growth outside the producer group.
The IEA expects world oil supply to rise by 1.5 million barrels per day (bpd) to a new high of 103.5 m
illion bpd in 2024, fuelled by record-setting output from the United States, Brazil, Guyana and Canada.
Pakistan launched strikes on separatist militants inside Iran on Thursday, in a retaliatory attack two days after Tehran said it struck the bases of another group within Pakistani territory.
“As tensions in the Middle East are spreading, traders don’t want to take short positions, but they are also cautious about continuing to build long positions as China’s economic recovery remains slow,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
Source: National News Agency-Lebanon