Oil prices increased over 1% during the week ending August 11 after positive demand forecasts from the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA).
International benchmark Brent crude traded at $86.69 per barrel at 1.54 p.m. (1054 GMT) on Friday, increasing by around 1.58% relative to the closing price of $85.34 a barrel on Monday.
Similarly, the American benchmark West Texas Intermediate (WTI) saw gains while trading at $83.06 per barrel at the same time, posting a 1.36% rise from Monday's session that closed at $81.94 a barrel.
This week saw an inflow of new oil market data released by important stakeholders.
Both OPEC and the IEA released their monthly oil market reports this week, signaling greater demand and alleviating concerns for the remainder of the year.
According to OPEC's oil market report, global oil demand is anticipated to rise by 2.4 million bpd to an average of 102 million bpd in 2023. For 2024, demand is forecast to grow by 2.2 million bpd to reach 104.3 million bpd.
Also, the IEA predicts world oil demand will hit record levels this year, fueled by a busier-than-expected summer travel season, increased oil use in power generation, and increased Chinese petrochemical activity.
Meanwhile, the US Energy Information Administration (EIA) predicts that production cuts by Russia and OPEC members, combined with increasing demand, will cause a fall in global oil inventories, putting upward pressure on oil prices until the end of this year.
Supply cuts from Russia and Saudi Arabia continue to boost prices. Last week, Saudi Arabia stated that it would extend its existing 1 million bpd output cutbacks through September. The country originally reduced output in July and extended it through August.
Likewise, Russia announced it would continue to voluntarily reduce oil exports. It said it would reduce exports by 500,000 bpd in August and cut 300,000 bpd in September.
By Zeynep Beyza Kilic
Anadolu Agency
energy@aa.com.tr