Oil Prices Try to Reverse Direction on OPEC Revised Forecast

Oil prices rose on Thursday after market sentiment improved amid OPEC’s forecast of supply shortages next year, outweighing data on an unexpected increase in U.S. stocks.

Photo: Reuters

February Futures for Brent crude oil added 0.53 percent, to $64,08 per barrel, while the U.S. WTI futures with delivery in January advanced 0.27 percent, to $58,91 per barrel at 9.15 GMT

It’s vital to be mentioned that OPEC said on Wednesday that it expected a moderate deficit in the oil market in 2020, indicating a greater equilibrium than it was previously expected – even earlier than the agreement over additional output  cut took effect.

The revised OPEC anticipation indicates a further devaluation of the forecast for crude market glut in 2020, as production growth in the U.S. begins to slow down.