The Kuwait Petroleum Corporation reported a significant uptick in the price of a barrel of Kuwaiti oil, soaring by $1.67 to $84.23 in yesterday’s trading, compared to $82.56 last Monday, reports Al-Jarida daily. Global oil markets experienced a bullish trend on Wednesday morning, buoyed by optimism from the US Energy Information Administration and the Organization of the Petroleum Exporting Countries (OPEC) regarding increased demand.

Data revealing a larger-than-expected decline in US crude oil inventories further supported the price hike. The Brent crude futures climbed by 50 cents to $82.42 per barrel, marking a 0.6 percent increase, the while US West Texas Intermediate crude futures saw a rise of 62 cents to $78.52, representing a 0.8 percent surge. The Energy Information Administration revised its global oil demand growth forecast for 2024 to 1.10 million barrels per day, up from the previous estimate of 900 thousand barrels.

OPEC maintained its projections for robust global demand, particularly in the second half of the year, citing expectations for increased travel and tourism. Analysts attributed the rise in crude oil prices to OPEC’s sustained demand growth forecast, with anticipated demand primarily driven by China and other emerging economies. Meanwhile, US crude oil inventories reportedly declined by 2.428 million barrels in the week ending June 7, surpassing analysts’ expectations.

In China, stable consumer price inflation in May and a slowdown in producer price declines suggested the need for additional measures to support domestic demand and economic recovery. Iraq’s Ministry of Oil reaffirmed its commitment to compensating for any excess production since the beginning of the year, pledging to adhere to the agreed production level of four million barrels per day for June and subsequent months. The ministry emphasized its dedication to compensating for surplus production during the designated compensation period, extending until the end of September 2025.

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