2024.01.1808:56:00UTC+00Oil Gains As Cold Hits US Production

Oil edged up on Thursday as OPEC forecast relatively strong growth in global oil demand over the next two years and a cold blast in the U.S. disrupted some oil production.

The dollar traded slightly weak, helping offset industry data showing increased crude oil inventories in the U.S. during the week ending January 12.

The American Petroleum Institute reported that crude oil inventories increased by 0.49 million barrels for the week ending January 12, against expectations for a decline by 2.4 million barrels.

Benchmark Brent crude futures rose half a percent to $78.28 a barrel, while WTI crude futures were up 0.8 percent at $73.03.

OPEC on Wednesday stuck to its forecast for relatively strong growth in global oil demand.

The oil cartel said that demand will rise by 2.2 million barrels per day this year, over 2023. OPEC expects oil demand to rise by 1.8 million barrels per day next year, led by China and the Middle East.

Meanwhile, data showed oil output in the U.S. state North Dakota, a major oil producing region, fell by 650,000 to 700,000 barrels per day, less than half its typical output, due to severe cold conditions in the region.

Elsewhere, the conflict in the Middle East threatened to expand further after Pakistan launched retaliatory missile strikes into Iran.