Oil nears the best levels of the month in a bounce back from the post-OPEC decline

A strong rise in global equities and the potential for China stimulus in the next 48 hours has lifted oil prices. Today’s US CPI report has led to a 1.8% rally in the Nasdaq as AI fever returns. The potential for Fed and PBOC rate cuts also speaks to improving prospects for global growth and energy demand.

With that, WTI crude oil has posted its best day in three weeks, climbing $1.77 to $70.37. That’s just a shade below the December high of $70.51 and an early sign that oil could bounce from the mid-60s once again.

Today OPEC released its 2024 and 2025 oil demand forecasts, saying its expected oil demand to rise by 1.61 million this year, that’s down from 1.82 mbpd in last months’ report. It’s the fifth cut since initial forecasts were released. For 2025, OPEC sees 1.45 million barrels of additional demand growth.

This article was written by Adam Button at www.forexlive.com.