Oil rose on Wednesday, firming its ground near a 10-month peak reached during trading a day earlier, as the market balanced supply concerns over Libya output and OPEC+ cuts with global macroeconomic headwinds.
The international benchmark Brent futures rose 17 cents, or 0.2 percent , to $92.23 a barrel while US West Texas Intermediate (WTI) crude climbed 21 cents, also 0.2 percent , to $89.05 a barrel.
Both benchmarks surged nearly 2 percent on Tuesday to close at their highest levels since November 2022.
“Bullish demand outlook by the OPEC and the US Energy Information Administration’s (EIA) prediction of a decline in global oil inventories reinforced market views of tightening supply going forward,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.
The news of OPEC member Libya shutting four of its eastern oil export terminals due to a deadly storm also lent support to oil prices, he added.
“But further gains may be limited as there is also downside pressure from lingering worries over weaker demand in China,” Yoshida said.
The Organization of the Petroleum Exporting Countries (OPEC) stuck to its forecasts for robust growth in global oil demand in 2023 and 2024, citing signs that major economies are faring better than expected despite headwinds such as high interest rates and elevated inflation.
