- Oil prices are higher, around $79, extending gains from yesterday
- OPEC released their monthly report yesterday, modestly raising their demand forecast to 2.25 MMBbl/d of growth and revising their supply estimate higher by 200 MBbl/d
- IEA says oil market is looser than expected due to supply gain (BBG)
- Upward demand revisions for this quarter are being outpaced by supply, according to the International Energy Agency
- Production growth from the US and Brazil has been outperforming forecasts, while demand growth remains robust as well
- The head of the IEA’s oil market division said, “The macroeconomic sentiment is deteriorating – there is a lot of concern about interest rates and slowing growth”
- The IEA sees market balances shifting back toward oversupply in the first half of 2024 due to a 60% slowdown in demand growth, with consumption increasing by only 930 MBbl/d next year
- Department of Energy buys crude for SPR (BBG)
- The agency purchased 1.2 MMBbls of oil at an average price of $77.57/Bbl as it looks to refill the Strategic Petroleum Reserve
- The Energy Department said, “President Biden and DOE remain committed to refilling the SPR at fair prices”