Summary
- Canada wildfires could disrupt 3.3 mln bpd oil supply
- OPEC keeps 2024 oil demand growth forecast at 2.25 mln bpd
- U.S. CPI data due Weds
(Reuters) – Oil prices were little changed on Tuesday, as OPEC maintained its global oil demand forecasts and investors waited on U.S. inflation indicators this week.
Brent crude futures fell 9 cents to $83.27 a barrel at 1102 GMT, while U.S. West Texas Intermediate (WTI) crude futures also lost 9 cents to $79.03 a barrel.
On Monday, Brent marked its biggest daily gain in more than two weeks, and WTI in more than a month, on signs of improving demand in the U.S. and China, the world’s top two oil consumers.
“Oil prices were slightly higher overnight but remain in a broad holding pattern over the past week, with the lead-up to the upcoming U.S. inflation data keeping some reservations in place,” said Yeap Jun Rong, market strategist at IG.
Investors are watching the U.S. Consumer Price Index data due on Wednesday for clues to when the Federal Reserve will consider cutting interest rates, which could spur economic growth and therefore oil demand.
On Tuesday, OPEC – the Organization of the Petroleum Exporting Countries – stuck to its forecast for relatively strong growth in global oil demand in 2024 and said there was a chance the world economy could do better than expected this year.
The OPEC monthly report said world oil demand will rise by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025.
The market is also watching wildfires in remote western Canada that could disrupt the country’s oil supply.
Firefighters on Monday were racing to contain one blaze in British Columbia and two in Alberta near the heart of the country’s oil sands industry.
“Spreading wildfires in Alberta oil sands impose downside risks to our constructive Canada production outlook as massive fires in the same region eight years ago triggered a temporary shutdown of over 1 million bpd oil production,” said Goldman Sachs analysts in a note.
Although no operational disruptions have been reported, Alex Hodes, an analyst at energy brokerage StoneX, said Canada’s 3.3 million barrel per day (bpd) production capacity was “very likely to be affected”.
Share This:
