Crude oil recovers from 2-month low after receiving IEA data

WTI crude oil futures remained stable above $78 per barrel on Wednesday, rebounding from a two-month low of $77.6 in early trading, triggered by a more than expected decline in crude oil inventories.

According to the report of the US Energy Information Administration, US crude oil inventories fell by 2,508,000 barrels, which exceeded the expected decrease of 1,362,000 barrels.

Furthermore, gasoline and distillate fuel reserves also unexpectedly declined.

Prior to this, prices fell to a two-month low in response to the fact that the International Energy Agency revised global demand growth downward by 140,000 barrels per day to 1.1 million barrels this year.

Meanwhile, according to OPEC's latest report, OPEC Plus member countries exceeded production limits by 568,000 barrels per day in the previous month.

Nevertheless, OPEC remains optimistic about future oil demand and predicts an increase of 2.25 million barrels per day in 2024 and 1.85 million barrels per day in 2025.