Crude oil prices surged around 1 percent overnight amidst the International Energy Agency increasing the world oil demand growth. In its December report, the IEA has increased the oil demand growth for 2023 to 1.7 million barrels/day. The OPEC report for 2023 pegs world oil demand growth at 2.2 million barrels /day.
West Texas Intermediate Crude Oil Futures for January settlement plunged to $74.91 before recovering to its current level of $76.17, implying an overnight gain of 1.03 percent. The benchmark which was at $75.39 at previous close had touched a high of $76.49 in the day's trade.
Brent Oil Futures for February settlement which had previously closed at $80.68 dropped to as low as $78.10, before recovering to its current level of $81.44, registering a growth of 0.94 percent. The day's high was $81.73.
Earlier, data from the American Petroleum Institute showed crude oil inventories in the U.S. rising by 7.819 million barrels in the week ended December 9, versus a 6.426 million barrels draw in the previous week and market expectations of a 3.913 million barrels decline. The unexpected spurt in inventories had caused the prices of the black fluid to slump in world markets.
Data from the U.S. Energy Information Administration is due later in the day. Markets are expecting a 3.6 million draw from inventories as compared to a 5.2 million draw in the previous week.
