Following signs of demand in an International Energy Agency (IEA) report, oil prices stabilized after dropping by more than $1 earlier in the session. According to UBS analyst Giovanni Staunovo, prices have stabilized after some “positive elements” in an IEA report.
Brent crude futures rose eight cents, or 0.09%, to $93.25 per barrel. US West Texas Intermediate crude price was $87.35 per barrel, up four cents, or 0.05%.
“I think we’re going to stay in a range. I don’t think $70 per barrel is in the cards, but anything over $100 is not justified,” stated Eli Tesfaye, senior market strategist at RJO Futures.
As much as 700,000 barrels per day, or twice as much as a year ago, are expected to be switched from gas to oil on a large scale between October 2022 and March 2023, as per IEA.
According to recent government data, the Strategic Petroleum Reserve’s ongoing releases helped drive up crude oil inventories in the U.S for the second week in a row.
