Oil prices remained stable on Thursday, influenced by bleak demand growth forecasts as well as immediate factors like China’s economic stimulus. The price of North Sea Brent crude for February delivery rose by 0.24% to $73.10 per barrel, while its American counterpart, West Texas Intermediate (WTI), for January delivery, increased by 0.26% to $70.47 per barrel.
Analysts attribute the ongoing “upward trend” in oil prices to China’s recently announced stimulus measures, which include plans to “ease” monetary policy next year.
A report released by the International Energy Agency (IEA) on Thursday projects a “supply surplus of 950,000 barrels per day in 2025.” This surplus could escalate to “1.4 million barrels per day” if the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) proceed with their plans to reintroduce some of their barrels back into the market starting in April.
OPEC continues to expect an increase in oil demand in 2024 and 2025, although it has revised its outlook downwards compared to the previous month, according to its latest monthly report published on Wednesday.
The report indicates that global consumption is expected to reach 103.82 million barrels per day in 2024, up from 102.21 million in 2023. OPEC revises its forecasts each month based on prevailing conditions. For 2025, OPEC anticipates world consumption will rise to 105.27 million barrels per day.
