Oil rises on global demand forecasts

Oil prices rose on Thursday as the International Energy Agency (IEA) joined producer group Opec in forecasting strong growth in global oil demand and as cold winter weather disrupted US crude output while the government reported a big weekly draw in crude inventories. Oil traders also worried about geopolitical risks in the Middle East. Brent crude futures gained 66 cents, or 0.9 per cent, to $78.54 a barrel by 11:25 a.m. EST (1625 GMT). US West Texas Intermediate crude futures rose 98 cents, or 1.4pc, to $73.54. The US Energy Infor­mation Admini­stra­tion repo­rted a larger than expected draw in crude inventories of 2.5 million barrels in the week ended Jan. 12.“The fear of another large build of total inventories has not materialized, modestly supporting pri­ces,” said Giovanni Staun­ovo, analyst at UBS. The IEA monthly report said it expects oil demand to grow by 1.24 million barrels per day in 2024, up 180,000bpd from its previous projection.