Oil prices ticked higher today after three key forecasters predicted that global oil inventories would fall in the second half of 2024, boosting prices.
Brent crude futures were up 88 cents, or about 1.1%, to $82.80 a barrel at 1219 GMT, while US West Texas Intermediate (WTI) crude futures were up 96 cents, or roughly 1.2%, to $78.86.
Both contracts rose by $1 or more earlier in the session.
The International Energy Agency (IEA), the US Energy Information Administration (EIA), and producer group the Organization of the Petroleum Exporting Countries (OPEC) have updated their views on the global oil demand-supply balance for 2024.
Their reports imply limited downside for prices in the second half of the year because all three predict declines in global oil inventories, Tamas Varga of oil broker PVM told Reuters.
Those views were reinforced by industry data on Tuesday showing US crude oil inventories fell more than expected last week.
On Wednesday, although the IEA trimmed its 2024 oil demand growth forecast to just under 1 million barrels per day (bpd), citing sluggish consumption in developed countries, the numbers suggest it agrees with OPEC and the EIA that there will be stock draws in the second half of the year, PVM's Varga said.
The IEA also predicted oil demand growth would plateau at 105.6 million bpd by 2029, and be well eclipsed by supply - a full 8 million bpd above projected demand - by 2030.
The IEA's view for next year, and up to the 2030s, is bleak, noted Varga.
"But if there are stocks draws for the second half of this year, then why would we expect a significant fall on prices in the anticipation that there will be a glut by 2030?"
On Tuesday, the EIA raised its 2024 world oil demand growth forecast to 1.10 million bpd, while OPEC stuck with its 2024 forecast of 2.25 million bpd.
Prices had eased more than 2% last week after OPEC and its allies said they would phase out output cuts starting October.
Focus is on key data expected on Wednesday.
Inventory data from the EIA, the US government's statistics arm, is due at 1430 GMT.
Further hints on interest rate policy will come from the US Consumer Price Index report before the bell, and the US central bank's policy announcement is due later in the day.
