BP released its annual energy outlook Wednesday. Among its conclusions: Oil demand will likely plateau by 2025, after which the decline will depend on how aggressively countries slash carbon emissions. If countries get serious about a “net zero” goal, oil demand could fall to 25 million to 30 million barrels a day in 2050, from 102 million barrels today.
The recent oil rally has stalled out with West Texas Intermediate largely flat this week, ahead 0.38%, after booking four-straight weeks of gains.
Oil futures rose Friday morning, aiming for a third straight winning session, after finding modest support the previous day following a cooler-than-expected U.S. June consumer-price index reading that reinforced expectations for the Federal Reserve to begin cutting interest rates later this year.
Strong US fuel demand and potential Fed rate cuts support oil prices, but global growth concerns, especially in China, may cap significant gains.
Brent crude oil has been trading in a tight range of $75-$90 a barrel since late 2022 as OPEC+ cuts keep a floor under prices while sizeable spare capacity, demand uncertainty and sanctions policy prevent the market breaking higher.
High U.S. fuel demand boosts oil prices to $83, as strong summer consumption and easing inflation bolster market confidence.
Oil prices rose in early Asian trading hours on Friday as signs of strong summer demand and easing inflationary pressures in the world's biggest oil market, the United States, bolstered investor confidence.
Crude oil triggered a bullish reversal today, targeting 89.23 and a likely second breakout above trendline resistance.
The inflation and interest rate outlook is outweighing mixed oil demand signals from the IEA and OPEC.
The inflation and interest rate outlook is outweighing mixed oil demand signals from the IEA and OPEC.
The significant U.S. inventory drawdowns and potential for strong summer demand suggest a slightly bullish short-term outlook for crude oil.
One forecast sees global oil production plateauing by next year.