HULT Private Capital reported that on Thursday, the International Energy Agency (IEA) raised its forecast for oil price demand for the remainder of 2022. The Paris-based agency, in its monthly oil report, has modified its 2022 demand outlook prediction by 380,000 barrels per day (BPD). This upgrade is on top of the IEA’s expectation for coal demand to reach an all-time high in 2022. HULT Private Capital saw a resulting increase in oil prices of over 1% on Thursday, and this growth forecast is combined with the soaring gas prices seen that have driven some consumers to switch to oil.
HULT Private Capital said that brent crude futures initially gained 2.7% o this IEA news trading, at just over $100 a barrel; however, as of August 16th, brent futures have fallen back to $92/barrel. At the same time, the U.S. West Texas Intermediate crude futures jumped 3.2%, reaching $94.87 per barrel. They, too, have since fallen and are floating in the lower $86/barrel range.
According to HULT Private Capital, energy prices have been high through the summer due to the continued supply chain issues le over from the Covid-19 pandemic and moreover the ongoing conflict in Ukraine since the invasion by Russia.
HULT Private Capital also stated that the IEA’s growth expectation was in contrast to OPEC, and that on the same day as the IEA’s report, it revised its own forecast down. OPEC sees the 2022 oil demand rise by 3.1 million; however, this is a 3.2% decrease amounting to 260,000 BPD fewer than their previous forecast.
HULT Private Capital 