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Bloomberg
Oil climbed to its highest level since November as two major agencies indicated that markets may be tighter than previously forecast.
West Texas Intermediate traded above $82. On Wednesday, the International Energy Agency’s Fatih Birol said the relatively small hit to demand from omicron means consumption has been stronger than many observers had expected. That followed a monthly report from the US Energy Information Administration that showed global oil inventories will decline slightly in the first quarter, compared with a previous forecast of expansion.
The EIA’s report also showed that global oil stockpiles declined by almost 3 million barrels a day in December, underscoring recent bullish price moves.
Crude’s rally to the highest close since November 11 came alongside gains in raw materials and equities after Federal Reserve Chair Jerome Powell sought to reassure investors that the central bank can rein in inflation without damaging the US economy.
Oil has been buffeted by wider sentiment in financial markets so far this year. US consumer prices soared last year by the most in nearly four decades, illustrating red-hot inflation that sets the stage for the start of Federal Reserve interest-rate hikes as soon as March. The consumer price index climbed 7% in 2021, according to Labor Department data released Wednesday, in line with forecasts.