WTI hovers around $78.00 after EIA’s forecast of optimistic global demand

• WTI may appreciate as the US Energy Information Administration anticipates optimistic global demand.
• EIA increased world Oil demand growth forecast to 1.10 million barrels per day in 2024.
• Oil prices struggled due to the Fed’s hawkish stance on monetary policy.

West Texas Intermediate (WTI) Oil price hovers around $77.90 per barrel during Asian trading hours on Wednesday. Crude Oil prices may rise due to optimistic global demand forecasts from the US Energy Information Administration (EIA).

According to Reuters, the EIA increased its 2024 world Oil demand growth forecast to 1.10 million barrels per day (bpd) from the previous estimate of 900,000 bpd. Additionally, the Organization of the Petroleum Exporting Countries (OPEC) maintained its 2024 forecast for robust growth in global Oil demand, citing expectations for increased travel and tourism in the second half of the year.

Analysts at the energy consulting firm Gelber and Associates noted, “Futures are higher as expectations of summer demand are supportive of prices despite the broader macro landscape remaining less optimistic than weeks previous,” per Reuters.

A strong US jobs report from the previous week has reinforced the Federal Reserve’s hawkish stance on monetary policy. The Fed is expected to maintain higher borrowing costs for an extended period, which could slow economic growth and reduce demand for Oil. Investors await the Federal Reserve’s (Fed) policy decision, along with the US inflation figures for May on Wednesday.