Rising oil production in the U.S. and busy pipelines to the Gulf Coast are pushing up the prices of U.S. crude oil. Specifically, West Texas Intermediate (WTI) crude is trading at higher prices in Houston than in Midland, Texas, showing strong demand and efficient transport.
Moreover, OPEC’s optimistic outlook on oil demand growth for 2024 and 2025 is also keeping Oil price supported. OPEC expects a demand increase of 2.25 million barrels per day (bpd) in 2024 and 1.85 million bpd in 2025.
Geopolitically, disruptions in the Red Sea, including attacks on ships by Yemen’s Houthi rebels, are affecting oil shipping routes and costs, keeping oil prices from dropping further. The U.S. responded with strikes against Houthi targets in Yemen.
The American Petroleum Institute reported an unexpected rise in Weekly Crude Oil Stock, now shifting the focus on EIA Crude Oil Inventories that are due today.
Natural Gas Price Forecast