Oil prices rose today, achieving gains for the fourth week in a row, after the International Energy Agency expected global demand to rise to a new record level this year, supported by the recovery of consumption in China. Brent crude futures rose 22 cents, or 0.3 percent, upon settlement, to reach the level of $86.31 a barrel, while US West Texas Intermediate crude futures reached $82.52 a barrel, up 36 cents, or 0.4 percent. The two benchmarks recorded gains for the fourth week in a row, in light of calming fears of the banking crisis that occurred last month, and the sudden decision to increase production cuts taken last week by the OPEC Plus alliance. And the International Energy Agency warned, in its monthly report issued today, that the large production cuts announced by the producing countries in the “OPEC Plus” alliance, consisting of the Organization of the Petroleum Exporting Countries (OPEC) and other producers led by Russia, may increase the oil supply shortage and harm by consumers. The agency expected global oil demand to rise by two million barrels per day in 2023, to a record level of 101.9 million barrels per day, driven mostly by strong Chinese consumption after lifting restrictions related to the (Covid-19) pandemic, noting that the demand for jet fuel represents 57 percent percent, of the increase in demand in 2023. The agency stated that it expects a decrease in global oil supply by 400,000 barrels per day by the end of the year, pointing to an expected increase in production of one million barrels per day from outside OPEC Plus, starting from last March, compared to 1.4 million barrels per day. One million barrels per day will be reduced by the group’s producing countries.
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