ANKARA
Oil prices saw upticks on Tuesday due to a boost in demand after the Organization of Petroleum Exporting Countries (OPEC) oil producers cited “robust major global economic growth trends in healthy oil market fundamentals” in addition to the expectation of higher demand over the remainder of this year and the next.
International benchmark crude Brent traded at $82.72 per barrel at 10.14 a.m. local time (0714 GMT), a 0.24% rise from the closing price of $82.52 a barrel in the previous trading session on Monday.
The American benchmark, West Texas Intermediate (WTI), traded at the same time at $78.38 per barrel, up 0.15% from Monday’s close of $78.26 per barrel.
OPEC revised up its demand growth prediction for this year due to an anticipated rise in oil demand. A consistent rise in the need for industrial and transportation fuels, supported by a rebound in the economies of China and other non-OECD regions, supported this more optimistic outlook.
The 13 major oil producers also projected a robust demand increase in 2024 on the back of solid global economic growth, amid continued improvements in China.
The report also said that despite the overblown negative sentiment in the market regarding China’s oil demand performance and the global oil market in general, the latest data shows Chinese crude imports increasing to 11.4 million barrels per day (bpd) in October and remaining on track to reach a new annual record high for this year at around the same level.
“In fact, Chinese crude imports remained very healthy, at a record level that is well above the five-year average range, rising by around 240,000 bpd month on month, with higher year-on-year crude imports of 1.2 million bpd. Similarly, India’s crude imports are also expected to pick up in the fourth quarter of 2023, reaching a record high this year,” the report said.
Countdown to end of supply disruptions via Iraq-Türkiye pipeline
News of the reopening of the pipeline that transports Iraqi crude from Kirkuk to export facilities in Ceyhan on the Turkish Mediterranean coast comes after an almost eight-month hiatus that restrained price rises.
The Iraqi Oil Minister, Hayan Abdel-Ghani, said Sunday that he expects to reach an agreement with the Kurdistan Regional Government (KRG) and foreign oil companies on resuming oil production from the region within three days.
The Israeli-Palestinian conflict is still posing a supply risk, which is affecting oil prices. Market participants are attempting to determine whether the war will spread to other nations and how it will affect the routes that carry crude oil.
