Oil markets were on the green on Friday’s opening session, following the statement of the IEA that the demand of crude worldwide would increase this 2018. However, it also warned investors that supply is rapidly growing.
The International Energy Agency (EIA) has heightened its expectations that the demand for oil this year will reach as much as 99.3 million barrels per day (bpd), higher compared to last year’s 97.8 million bpd. The agency also added that commercial oil stockpile in industrialized nations in the OECD jumped last January for the very first time in seven months.
They also stated that Venezuela could still prompt a revived oil stock drawdown, considering that the recent economic turmoils there has trimmed more than 50 percent of oil output in two years to lows not seen in about ten years. The IEA noted that surging supplies has limited gains in crude prices on the same day as they believe that supplies that were from the U.S. will rise about 1.8 million bpd this 2018.
International benchmark for oil prices London Brent crude futures gained about 2 cents to settle at $65.14 a barrel after adding 23 cents on its previous settlement. Brent was 0.5 percent lower over the course of the week.
Meanwhile, NYMEX crude edged up by 0.1 percent or 5 cents to finish at $61.24 a barrel for its April delivery, after also rising 23 cents on Thursday. The contract is expected to drop by 1.3 percent for the week after advancing by 0.5 percent last week.