Wednesday, 7 May 2025

Oil prices near 10-month high supported by demand concerns

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Oil prices rose today, Wednesday, to hover again at the highest level in ten months that they touched in the previous session, as expectations of shrinking global supplies and fears of an interruption in Libyan supplies overshadowed fears of a slowdown in demand in some countries such as China.

According to Reuters, Brent crude futures rose 8 cents by 0054 GMT, equivalent to 0.1%, to $92.14 per barrel, while US West Texas Intermediate crude rose 14 cents, or 0.2%, to $88.98 per barrel.

The two benchmarks rose by about two percent on Tuesday, closing at their highest levels since November 2022.

Satoru Yoshida, a commodity analyst at Rakuten Securities, said, “Positive expectations for demand from OPEC and the US Energy Information Administration’s predictions of a decline in global oil inventories have strengthened market views about tight supplies in the future.”

He added that news of OPEC member Libya closing four of its eastern oil export terminals due to a deadly storm also contributed to raising oil prices.

The Organization of the Petroleum Exporting Countries (OPEC) stuck to its expectations of strong growth in global oil demand in 2023 and 2024, attributing this to indications that the performance of major economies is improving.

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