After falling by more than $1 earlier in the session, oil prices stabilised on Wednesday as a result of indications of strong demand in an International Energy Agency (IEA) report.
By 0933 GMT, Brent crude futures were up 8 cents, or 0.09%, to $93.25 per barrel. U.S. West Texas Intermediate crude was up 4 cents, or 0.05%, to $87.35 per barrel.
According to UBS analyst Giovanni Staunovo, prices stabilised as a result of some ‘good features’ in an IEA report released on Wednesday.
As much as 700,000 barrels per day (bpd), or twice as much as a year ago, are expected to be switched from gas to oil on a big scale between October 2022 and March 2023, according to the IEA. Global observed inventories, according to the IEA, decreased by 25.6 million bbl in July.
The Organization of the Petroleum Exporting Countries predicted on Tuesday that global oil consumption would increase in 2022 and 2023, noting indications that major economies were performing better than anticipated despite obstacles including rising inflation.
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