Crude oil rose as OPEC issued its report where it sticks to a shortage next Year.
Crude oil experienced a 1.12% gain, settling at 5781, following OPEC’s monthly oil market report that maintained a forecast of a supply shortfall in the coming quarters. The report attributed the recent decline in crude prices to “exaggerated concerns” about oil demand growth. OPEC retained its forecast for world oil demand growth at 2.25 million barrels per day (bpd) for 2024. In the US, crude oil inventories recorded a significant decline of 4.259 million barrels for the week ending December 8th, surpassing market expectations of a 0.65 million barrel draw.
This reduction extended the 4.632 million drop from the previous week. The data indicated increased demand, supported by a 1.468 million barrel rise in total product supplied to refineries. However, stocks at the Cushing, Oklahoma, delivery hub increased by 1.228 million barrels. The American Petroleum Institute’s figures for the same period showed a 2.3 million barrel decline in crude stocks, contrasting with a rise of about 5.8 million barrels in gasoline inventories and nearly 280,000 barrels in distillate stocks.