Oil futures rose on Tuesday for a third session, propped up by healthy demand forecasts and as ministers from OPEC touted the strength of its agreement to cut output to bolster prices.
International benchmark Brent Crude futures were at $65.66, which was up 12 cents, or 0.18 percent. Meanwhile, U.S. West Texas Intermediate crude futures were at $62.72 a barrel, up 15 cents, or 0.24 percent.
IEA Demand, OPEC Output Cuts
The International Energy Agency (IEA) said on Monday that global oil demand was expected to grow over the next five years, while the output from producers in the Organization of the Petroleum Exporting Countries would rise at a much slower pace.
The IEA’s comment on increased demand was made during the CERAWeek conference in Houston on Monday and preceded statements from OPEC Secretary General Mohammed Barkindo that called the supply cut agreement with global producers “as solid as the rock of
To fill the gap between OPEC and global demand, the IEA said the United States would supply much of the oil demand as its shale oil production was set to surge.
U.S. Crude Production
U.S. crude production has risen to more than 10 million barrels per day (
BMI Research said in a note to clients on Tuesday that it had revised its 2018 Brent crude price forecast upward to $67 a barrel due to "accelerated market rebalancing and strong sentiment-driven support".
"We maintain that firming global demand and weaker supply growth will support crude prices over 2018," the note added.
U.S. crude inventories were expected to rise by 3 million barrels in the week to March 2, marking a second straight weekly increase, according to a Reuters poll.
Industry group the American Petroleum Institute (API) is set to release its inventory data at 4:30 p.m. EST (2130 GMT) on Tuesday and the U.S. Energy Department's Energy Information Administration (EIA) is scheduled to report its data at 10:30 a.m. EST (1530 GMT) on Wednesday.
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