Global oil supply growth will likely slow down this year, Rystad Energy said in a report on Monday, with a high possibility of a further decrease in 2025.
Oil prices are moving higher after snapping a three week losing streak. Traders are sifting through what mixed economic data out of China may mean for demand.
Oil futures edged higher early Monday, holding their ground after an initial dip following data that showed a fall in China crude demand in May.
The anticipated increase in demand from the summer driving season and potential inventory drawdowns support a positive trend for crude oil prices.
Despite mixed signals and a dip on Friday, oil prices ended the week higher, sparking hopes of a bullish reversal.
Oil prices slipped in early Asian trading on Monday after a survey on Friday showed weaker U.S. consumer demand and as traders awaited the release of key economic data from China, the world's biggest crude importer.
The overall market sentiment remains cautiously bullish, with strong demand projections and constrained supply likely to support crude oil prices.
The crude oil market has had a strong week, as the markets have been continuing to see a lot of sideways action over the longer term, or at least for the last 18 months. The markets will continue to be interested in geopolitics, wars, and global growth – or lack of.
Oil prices are up more than 4.5% for the week, the strongest gains since early April. Oil remains well below annual highs set in April but has regained ground after a sell-off last week pushed prices to four-month lows.
Oil futures were little changed early Friday, remaining on track for solid weekly gains that have more than erased the tumble seen after OPEC+ on June 2 announced a plan to begin phasing in the return of around 2.2 million barrels a day of crude later this year.
Demand projections are strong, but market conditions suggest caution as crude oil traders await clearer signs of increased fuel consumption.
Oil prices fell on Friday but were on track for their first weekly gain in four weeks as markets assessed the impact of higher-for-longer U.S. interest rates versus solid outlooks for crude and fuel demand this year.