Oil prices should find enough support from continuously tightening global market conditions through year-end. But currently any upside in prices may be limited, barring a halt to OPEC+ output hikes. This is with regard with the group’s own projections reportedly pointing to a return to surplus in 2022. From a technical perspective, the 50-day simple moving average remains. The immediate resistance level for WTI futures. While offering immediate support for Brent, he added. OPEC+ has revised up its 2022 oil demand forecast ahead of the meeting later today. This amid pressure from the United States to ramp up production, according to Reuters.
However oil prices were up by this Wednesday morning. Experts believe demand will reach 4.2million barrels per day (bpd) next year. This up from the previous forecast of 3.28 million bpd. Despite the increase in production, world stocks of oil expected to fall. At an average rate of 825,000 bpd a day over the next four months. Similarly the higher demand forecast strengthens the case for a speedier output increases by OPEC+ as benchmark. Brent crude traded above $72 per barrel, close to multi-year highs.
On Tuesday, OPEC+ sources forecasted a 0.9 million bpd deficit this year as global demand recovers. The report had initially forecast a surplus of 2.5 million bpd in 2022. But this later revised to a smaller surplus of 1.6 million bpd due to stronger demand. The sources said. Due to this the commercial oil inventories in the OECD. A group of mostly developed countries, would remain below their 2015-2019 average. This until May 2022 rather than the initial forecast for January 2022. However, JCB Energy revealed that OPEC crude output rose by 285k b/d m/m in August to 27.24 million b/d, Bloomberg reported. Saudi Arabia led the gains, increasing by 100k b/d to 9.6 million b/d. OPEC reviving output as planned, but increases being tempered by production issues in West Africa.
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