By Adedapo Adesanya
Oil prices rose slightly on Thursday in an up-and-down trade, supported by a forecast from the Organisation of the Petroleum Exporting Countries (OPEC) for demand growth, with Brent crude futures settling at $82.75 per barrel after going up by 15 cents or 0.2 per cent and the US West Texas Intermediate (WTI) crude futures closing at $78.62 a barrel after a 12-cent or 0.2 per cent gain.
Support came from comments by OPEC’s Secretary General, Mr Hathaim Al Ghais, which helped boost crude prices.
He noted that the cartel does not see a peak in oil demand in its long-term forecast and expects demand to grow to 116 million barrels a day by 2045, and may be higher.
The International Energy Agency (IEA) said in a report on Wednesday that it sees oil demand peaking by 2029, levelling off at around 106 million barrels per day towards the end of the decade.
Mr Al Ghais, a critic of the IEA in an op-ed called the IEA report “dangerous commentary, especially for consumers, and will only lead to energy volatility on a potentially unprecedented scale”.
OPEC+ members are cutting output by a total of 5.86 million barrels per day, or about 5.7 per day of global demand.
That includes cuts of 3.66 million barrels per day, which the group on June 2 agreed to extend by a year until the end of 2025, and cuts of 2.2 million barrels per day, which OPEC+ will gradually phase out for a year from October.
On Wednesday, the US Federal Reserve held interest rates steady and pushed out the projected start of policy easing to as late as December.
In a press conference after the end of the US central bank’s two-day policy meeting, its chairman, Mr Jerome Powell said inflation had fallen without a major blow to the economy and according to analysts, this could place pressure on crude prices.
Higher borrowing costs tend to dampen economic growth and can limit oil demand.
Last week, U.S. crude stockpiles increased more than anticipated, primarily due to an increase in imports, while fuel inventories also increased more than anticipated, according to data from the Energy Information Administration released on Wednesday.
Additionally, oil traders are monitoring ongoing discussions regarding the possibility of an armistice in Gaza, which could alleviate concerns regarding potential disruptions to the region’s oil supply.
On Wednesday, Houthi militants, who are affiliated with Iran, claimed responsibility for missile and small watercraft attacks that endangered a Greek-owned coal carrier near the Red Sea port of Hodeidah in Yemen.
Modupe Gbadeyanka