Texas oil falls 0.68%, reaching $85.62 per barrel.

The price of West Texas Intermediate (WTI) crude oil opened this Thursday with a decrease of 0.68%, at $85.62 per barrel.

WTI futures contracts for May delivery were down $0.59 from the previous session’s close.

Yesterday, the Energy Information Administration (EIA) reported that commercial crude oil stocks rose by 5.8 million barrels last week, although fuel stocks, which reflect demand, fell.

The EIA’s weekly data were fairly strong through the end of the first quarter, and the gasoline statistics particularly show an upbeat picture of consumer health and demand momentum
the outlook for the oil market remains bullish due mainly to geopolitical tensions and the lingering threat of a retaliatory attack by Iran after the attack on the Iranian consulate in Damascus, blamed on Israel, in which several senior Iranian Revolutionary Guard officers were killed.

Investors also have their eyes on the monthly oil market report from the Organization of the Petroleum Exporting Countries (OPEC) to be released today and the International Energy Agency’s oil market report to be released on Friday.

On Thursday, OPEC forecasted strong fuel consumption during the summer months and maintained its projection for relatively robust growth in global oil demand in 2024, while stating that there is a possibility of the global economy performing better than expected this year.

The Organization of the Petroleum Exporting Countries said in a monthly report that global crude demand would increase by 2.25 million barrels per day (bpd) in 2024 and 1.85 million bpd in 2025. Both forecasts remained unchanged from last month.

An uptick in economic growth could further boost crude prices, which have surpassed $90 per barrel this year due to tighter supply and the war in the Middle East. OPEC and its allies, known as OPEC+, agreed last week to maintain production cuts until the end of June.

“Despite some downside risks, the continuation of the momentum seen earlier in the year could translate into further upside potential for global economic growth in 2024,” OPEC noted in its report.