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Oil futures edged higher on Thursday, supported by data that showed the pace of U.S. inflation is slowing, with May producer prices coming in below expectations a day after May consumer price data was tame.
OPEC Chairman and Secretary-General Haitham Al Ghais on Thursday dismissed predictions of peak oil demand, dismissing a report from the International Energy Agency that suggested oil consumption would rise by 2029. reaches its peak.
OPEC does not see oil demand peaking in its long-term forecast and expects demand to grow to at least 116 million barrels per day by 2045, while the IEA sees oil demand stabilizing at 106 million barrels per day by the end of the decade.
Al Ghais said similar pessimistic forecasts in the past have been proven wrong, noting that the IEA had suggested gasoline demand peaked in 2019 and coal demand in 2014.
The IEA predicts that economic growth will fall “sharply to almost no growth” in the four years to 2030, which Arghese said was an “unrealistic scenario” and a “dangerous commentary, especially on consumers.” In other words, it will only lead to energy fluctuations.” The scale may be unprecedented. “
The secretary-general wrote that while “OPEC welcomes all progress in renewable energy and electric vehicles, it does not go far enough to replace 80% of the energy mix”.
Front-month Nymex Crude Oil (CL1:COM) for July delivery is closed +0.1% To $78.62/barrel, front month August Brent crude oil (CO1:COM) ended +0.2% to US$82.75/barrel.
ETF:(New York Stock Exchange: Use), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (NRGU), (USOI)
In the short term, OPEC maintained its demand growth forecast at 2.2 million barrels per day, while the IEA lowered its demand growth forecast from 1.1 million barrels per day to 960,000 barrels per day.
In comments paraphrased by Dow Jones, analyst Jim Ritterbusch took a pessimistic view on the global oil balance and argued that compliance with OPEC+ production quotas may be reduced as summer approaches, “especially given the By last week, U.S. production was expected to increase for the first time in about three months.”
