Oil prices rose after the International Energy Agency (IEA) stated that oil markets were tight, but still trending towards weekly losses on inflation concerns.
- Brent crude futures increased $1.01 or 1.1% to hit $92.42 per barrel at 1203 GMT as US West Texas Intermediate crude rose $1.15 or 1.3% to hit $91.03 per barrel.
- Meanwhile, oil prices are on pace for their first weekly fall after seven straight weekly gains.
- IEA stated that Saudi Arabia and the United Arab Emirates could help to stabilize volatile oil markets if they increased their crude supply, further noting the OPEC+ alliance produced 900,000 barrels per day less than target in January.
- The two OPEC+ producers have the largest spare production capacity and could help to boost the deteriorating global oil inventories that have, alongside other factors, pushed prices close to $100 per barrel, worsening inflation globally.
The IEA also upgraded its 2022 demand outlook by 800,000 bpd. It projects global demand to grow by 3.2 million bpd this year, hitting an all-time high of 100.6 million bpd.
CL! up +1.38%, USOIL up +1.16%