Oil prices rose on Wednesday after the Energy Information Administration (EIA) forecast a drop in oil production and the International Energy Agency (IEA) said it expects increased demand from China.
The upside remained capped after industry data showed rising U.S. crude stockpiles. Benchmark Brent crude futures rose 0.3 percent to $79.64 a barrel, while WTI crude futures were up 0.4 percent at $75.12.
In its short-term energy outlook released on Tuesday, the EIA projected demand would outpace supply by 100,000 barrels a day in 2023 and by 200,000 barrels a day in 2024.
Separately, the IEA said it expects the oil market to stay tight in the second half of 2023 because of strong demand from China and developing countries.
Data from the American Petroleum Institute showed on Tuesday that U.S. crude stockpiles unexpectedly grew by about 3 million barrels in the week to July 7. The official numbers from the Energy Information Administration will be out later in the day.
Meanwhile, the dollar hit a two-month low against rivals ahead of U.S. inflation data, expected to show moderation in price pressures.
