What's Going On in Crude Oil Futures?
WTI futures are up 22 cents to $52.50/bbl, while Brent oil futures contracts up slightly to $62/bbl.
Crude Oil Fundamentals
Yesterday IEA cuts oil demand growth forecast following Wednesdays bearish report from OPEC that trimmed its forecast for world oil demand, the IEA has also slashed its estimates for the second straight month.
"Until recently, the focus has been on the supply side with the familiar list of uncertainties - Iran, Venezuela, Libya, and the Vienna Agreement," the agency wrote in its latest monthly report. "Now, the focus is on oil demand as economic sentiment weakens." Revising down its estimate by 100K barrels, the IEA now expects oil demand growth to reach 1.2M bpd this year, before rebounding to 1.4M bpd in 2020.
Crude oil prices jumped earlier in week following attacks on two oil tankers in the Gulf of Oman, close to the Strait of Hormuz. This region ships more than 30% of the world's oil.