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Oil Hits Fresh Seven-Year High on Outlook for Resurgent Demand

  • Crude demand on track to reach pre-pandemic levels, IEA says
  • WTI near $87 a barrel after closing at highest since 2014
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WATCH: Daniel Hynes of ANZ says the supply outlook for oil looks “relatively subdued.”Souce: Bloomberg
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Oil touched its highest level since October 2014 as the International Energy Agency said the market looks tighter than previously thought, with demand proving resilient to omicron.

Futures in New York closed up 1.8% on Wednesday, with the IEA saying in a report that oil demand is on track to hit pre-pandemic levels. The agency also said global stockpiles are falling rapidly as demand remains robust and the OPEC+ coalition struggles to revive output. That’s a further indication that production could be lower, or consumption could be higher, than the market estimates, it said.