Oil Rises as Tight Supply Outweighs Bearish Demand Signals
- IEA says OPEC+ only managed to produce 10% of supply increases
- Agency trims oil-demand forecast as China reimposes lockdowns
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Oil rose above $104 with traders seeing a global supply deficit even as the International Energy Agency lowered its global demand growth estimates because of China’s renewed lockdowns.
West Texas Intermediate rose 3.6% on Wednesday, extending its recent rally above $100 a barrel. The IEA said that OPEC+ members have only managed to provide 10% of their promised supply increases for March. In the same report, the agency cut its forecast for the world’s crude needs this year after Beijing reimposed lockdowns to contain the spread of Covid-19.