- Crude Oil surged on Thursday as markets repriced growth outlook.
- IEA revised its demand outlook but still lags behind OPEC.
- API, EIA Crude Stocks both drew down this week.
West Texas Intermediate (WTI) US Crude Oil knocked into its highest bids in over three months, etching in a new high of $81.05 on Thursday as barrel traders rebalance their price outlook after US Crude Oil stocks fell more than expected this week and the Internation Energy Agency (IEA) lifted their demand growth outlook.
The IEA is now forecasting global Crude Oil demand to increase through 2024 by 1.3 million barrels per day, raising their initial forecasts by an additional 110K barrels per day. According to the IEA, stronger demand growth from the US as well as ongoing uncertainty surrounding ship attacks by Houthi rebels in the Red Sea are increasing demand for ship fuel as cargo ships reroute around the continent of Africa to connect Asia and European markets as Iranian-backed militants block access to the Suez Canal.
The IEA now expects global Crude Oil demand to average 103.2 million barrels per day in 2024, and the agency’s 2025 demand growth forecasts have increased by about 50% since first introducing their outlook in summer of last year. Despite the significant uptick in demand expectations, the IEA is still coming in well below demand expectations from the Organization of the Petroleum Exporting Countries (OPEC), which expects Crude Oil demand growth to add at least 2.2 million bpd to current demand through 2024.
US Crude Oil supplies declined more than expected this week as refineries kick in additional production. The American Petroleum Institute (API) saw a 5.5 million barrel drawdown for the week ended March 8 compared to the expected uptick of 400K barrels, while the Energy Information Administration (EIA) Crude Oil stocks fell 1.5 million over the same period, well below the forecast increase of 1.338 million barrels.
WTI technical outlook
WTI US Crude Oil climbed to a multi-month high of $81.50 on Thursday, tipping into $81.05 before settling back into the $80.50 level. WTI shot higher after rebounding from last week’s late swing low into $76.50. US Crude Oil has rallied nearly 60% bottom-to-top.
Daily candlesticks punched higher, piercing a long-standing consolidation range around the 200-day Simple Moving Average (SMA) near the $78.00 handle. US Crude Oil is up nearly 19% from November’s bottom bids near $68.00 per barrel.
WTI hourly chart
WTI daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Next upside target comes at 0.6550
AUD/USD managed well to shrug off the marked advance in the Greenback as well as geopolitical tensions, regaining the area above the 0.6500 hurdle ahead of preliminary PMIs in Australia.
EUR/USD: Further losses now look at 1.0450
Further strength in the US Dollar kept the price action in the risk-associated assets depressed, sending EUR/USD back to the 1.0460 region for the first time since early October 2023 prior to key releases in the real economy.
Gold faces extra upside near term
Gold extends its bullish momentum further above $2,660 on Thursday. XAU/USD rises for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. Markets await comments from Fed policymakers.
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.