Oil posts fourth weekly gain as IEA sees higher price threat
BNN Bloomberg
Oil rose for the fourth straight week, supported by signs of a tightening global market that have the International Energy Agency warning of higher prices ahead.
West Texas Intermediate settled above US$82 a barrel, posting its longest run of weekly advances since June. Crude is hovering near five-month highs after OPEC+ surprised the market with plans to cut more than 1 million barrels of daily output. Declining U.S. stockpiles, weaker flows from Russia and interruptions to pipeline supplies from Iraqi Kurdistan have added to the gains.
Markets are digesting a week of mixed projections for crude supply and demand. The latest OPEC+ cuts threaten to boost oil prices for consumers already facing high inflation, the IEA said in its monthly outlook on Friday. The cartel had forecast a day earlier that markets would be deeply undersupplied. In contrast, the U.S. Energy Information Administration projected supplies surpassing demand both in 2023 and 2024.
