SINGAPORE- Oil prices rose on Thursday as OPEC forecast relatively strong growth in global oil demand over the next two years and the market eyed disrupted US oil production amid a cold blast, as well as geopolitical tensions in the Middle East.
Brent crude futures gained 21 cents, or 0.3 percent , to $78.09 a barrel while US West Texas Intermediate crude futures rose 40 cents, or 0.6 percent , to $72.96.
OPEC, in a monthly report, said world oil demand is expected to rise by a robust 1.85 million barrels per day (bpd) in 2025 to 106.21 million bpd. For 2024, OPEC saw demand growth of 2.25 million bpd, unchanged from its forecast in December.
However, price gains were capped for now as the market considered mixed drivers.
“Brent crude prices remain broadly stuck in a range as they has been over the past two weeks, as market participants struggle to weigh mixed demand-supply dynamics with prevailing geopolitical tensions,” said Yeap Jun Rong, market strategist at IG.
An unexpected build in US crude stockpiles and challenging recovery conditions in China continue to cast a shadow over the oil demand outlook, said Yeap, though the market remains wary of geopolitical developments.
In the latest tensions, Pakistan has conducted strikes inside Iran targeting Baluchi militants, a senior intelligence official told Reuters on Thursday, two days after Iran conducted strikes inside Pakistani territory.
