Oil prices firm amid rising inventories, demand recovery ‎expectation ‎

Oil prices firmed today, Wednesday, in light of bleak indications from data on a sudden increase in US crude stocks and expectations of OPEC and the International Energy Agency for a recovery in oil demand over the next year.

According to Reuters, Brent crude futures fell 17 cents, or 0.2 percent, to $80.51 a barrel by 0926 GMT. US West Texas Intermediate crude futures fell three cents to $75.36.

US crude inventories rose by about 7.8 million barrels in the week ending December 9, according to market sources citing data from the American Petroleum Institute, while analysts polled by Reuters expected a decline in stocks by 3.6 million barrels.

Inventory data overshadowed the high sentiment that pushed the market up by 3 percent in the previous session, hoping for a recovery in demand in China with the easing of Covid-19 restrictions, and due to the weakness of the dollar after data showed declining inflation in the United States.

The Organization of the Petroleum Exporting Countries (OPEC) said in its forecast for 2023 that oil demand will grow by 2.25 million barrels per day over the next year, to reach 101.8 million barrels per day, with a possible increase from China.

On Wednesday, the International Energy Agency raised its estimate for oil demand in 2023 to an increase of 1.7 million barrels per day to 101.6 million barrels per day.

The market also received support this week from the leakage and stoppage of the Keystone pipeline of TC Energy, which transports 620 thousand barrels per day of Canadian crude to the United States.

Officials said it would take at least several weeks to fix.