Oil prices edged up on Wednesday on signs of near-term supply tightness but remained near their lowest in two weeks, a day after OPEC downgraded its forecast for global oil demand growth in 2024 and 2025.
Brent futures rose 17 cents, or 0.24%, to $72.06 a barrel by 0420 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 14 cents, or 0.21%, at $68.26. “Crude oil prices edged higher as tightness in the physical market offset bearish sentiment on demand.
Buyers in the physical market have been particularly active, with any available cargoes being snapped up quickly,” ANZ analysts said in a note.
But falling demand projections and weakness in major consumer China continued to weigh on market sentiment.
“We may expect prices to consolidate around current levels for longer,” said Yeap Jun Rong, market strategist at IG, adding the recent attempt for a bounce was quickly sold into.
Oil prices settled up 0.1% on Tuesday following the news, after falling by about 5% during the two previous sessions.
