Vitol Senior Executive said on Wednesday, global oil demand has risen above 100 million barrels per day (bpd) despite roughly 2 million bpd jet fuel demand missing, Reuters reports, citing sources familiar with the matter.
Earlier this week, Russell Hardy, CEO of the commodity trading group, said: “Global oil market fundamentals will likely remain tight over the coming year as oil demand continues to build after having mostly fully recovered to 2019 pre-pandemic levels.”
Additional quotes
"So then when you begin to look forward into 2022, clearly demand is going to carry on increasing.”
"A US SPR release...should dampen a little bit the front end of the market but it doesn't change things fundamentally. Next year is still expected to remain in a reasonably tight [oil market] balance," Hardy added.
Elsewhere, Iranian news agency, Tasnim, reported about an explosion at an oil pipeline in southern Iran. Although no additional details are mentioned about the same.
WTI looks south
WTI is off the lows but remains vulnerable amid the recent strength in the US dollar and a likely release of the oil supplies from the US Strategic Petroleum Reserve (SPR).
At the time of writing, the US oil is trading at $79.25, down 0.53% on the day. Sellers are taking a breather before embarking on their next journey southwards.
The crucial demand area around $77.94-$77.70 is the price zone beat for oil bears. Within that region, the ascending 50-Daily Moving Average (DMA) and November 4 low lie.
WTI technical levels to watch
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
EUR/USD holds steady above 1.0500 ahead of FOMC Minutes
EUR/USD trades marginally higher on the day above 1.0500. The US Dollar struggles to preserve its strength amid a modest improvement seen in risk sentiment, helping EUR/USD hold its ground before the Fed publishes the minutes of the November policy meeting.
GBP/USD extends recovery, trades near 1.2600
GBP/USD extends its daily recovery toward 1.2600 in the European session on Tuesday, following a slump to the 1.2500 area in Asian trading. The pair finds footing as the US Dollar retreats with markets looking past Trump tariff threats, bracing for FOMC Minutes.
Gold price defends $2,600 ahead of FOMC minutes; not out of the woods yet
Gold price retains its negative bias for the second straight day but manages to hold comfortably above $2,600. The growing conviction that Donald Trump's expansionary policies will reignite inflation and limit the scope for the Fed to cut interest rates further triggers a fresh leg up in the US Treasury bond yields.
Trump shakes up markets again with “day one” tariff threats against CA, MX, CN
Pres-elect Trump reprised the ability from his first term to change the course of markets with a single post – this time from his Truth Social network; Threatening 25% tariffs "on Day One" against Mexico and Canada, and an additional 10% against China.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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.