Oil prices have increased after a report by the International Energy Agency (IEA) predicted that there will be stronger demand.
The IEA prediction overshadowed a World Bank report, which had given a gloomy forecast for world economy, citing softer growth in emerging economy and softer output in the US.
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Brent crude oil for July remained unchanged at $65.70 a barrel, while the US crude reduced by 20 cents at $61.23 a barrel, Reuters reported.
Oil demand growth in 2015 is expected to increase by 280,000 barrels per day (bpd) to 1.40 million bpd, as projected by IEA.
According to the agency, oil prices are backed by ‘unexpectedly strong global oil demand growth’.
The prices were also backed by decline in the US stocks as the oil market in the country has gradually tightened following several months of strong oversupply.
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By GlobalDataIn 2015, the global economy may expand 2.8% below its 3% outlook in January, predicted by the World Bank.
BNP Paribas commodity markets strategy and oil strategy head Harry Tchilinguirian told the news agency that optimistic price effects from lower oil prices lead to a higher oil demand and by the end of 2015 the forecasts may be stronger.
With larger draw down, crude inventories in the US reduced to 6.8 million barrels last week, the US Energy Information Administration reported.
