© Reuters. Total oil refinery in France – Photo from the Reuters archive.
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NEW YORK (Reuters) – It rose 1% on Wednesday as the International Energy Agency predicted an increase in the switchover from gas to crude due to rising prices this winter, although demand outlook remains pessimistic .
And global benchmark crude contracts closed a mix at the closest expiration of the trading session, up 93 cents, or 1 percent, to register at a close of 94.10 a barrel.
US West Texas Intermediate crude contracts rose $ 1.17, or 1.3 percent, to stand at $ 88.48 a barrel.
The International Energy Agency predicts that the intensification of the economic slowdown and the weakening of the Chinese economy will cause global oil demand to stagnate in the fourth quarter of this year. This has kept prices under pressure recently and could prevent further hikes.
The agency also said it expects a large-scale transition from gas to oil for heating, saying it would average 700,000 barrels per day from October to March 2023, or double the level it was a year ago. This, together with expectations of weak supply growth, is helping to revive the market.
The agency said it detected a 25.6 million barrel drop in global oil stocks in July.
But in the US, crude oil inventories rose last week for the second straight week, supported once again by continued crude releases from the Strategic Petroleum Reserve. The latest government data showed commercial inventories increased by 2.4 million barrels, with 8.4 million barrels drawn from emergency reserves as part of a schedule that expires next month.
The Organization of Petroleum Exporting Countries (OPEC) said on Tuesday that global oil demand in 2022 and 2023 will be stronger than expected, indicating signs that major economies are performing better than expected despite events such as inflation. high.
(Prepared by Wagdy Al-Alfi for the Arabic Bulletin)
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