OPEC's projected demand boost instills optimism

During Asian trading on Wednesday, the oil market saw a rise due to an unexpected drop in U.S. oil inventories and OPEC's consistent forecast of strong demand growth.

Despite this, prices remained between $75 to $85 per barrel due to conflicting supply and demand signals and China's economic slowdown. The stronger dollar, driven by higher U.S. inflation, pushed prices down, but Middle East tensions and supply risks countered this.

The American Petroleum Institute's report of a 5.5 million barrel inventory decline suggested a temporary tightening in the U.S. market. However, this is expected to be short-lived due to sluggish local fuel demand. An upward revision in the Energy Information Administration's oil production outlook for 2024 balanced some optimism.

The steady demand forecast by OPEC and the upcoming report from the International Energy Agency are crucial for future market trends. For natural gas, there was a modest increase, indicating potential volatility.

WTI and Brent oil prices remained near critical levels, suggesting possible price movements.