Oil prices rose on Friday, notching gains for a fourth straight week, after the International Energy Agency said global demand would rise to a new record high this year, supported by a recovery in consumption in China.
The IEA warned that deep production cuts announced by OPEC Plus producers could further supply shortages and hurt consumers.
Brent crude futures rose 0.3% at settlement yesterday to $86.31 a barrel, while U.S. West Texas Intermediate crude futures were at $82.52 a barrel, up 0.4%.
Both benchmarks recorded gains for the fourth straight week as fears of last month's banking crisis eased and the surprise decision to increase production cuts taken by the OPEC Plus alliance last week.
The International Energy Agency said in its monthly report on Friday that global oil demand is set to rise by 2023 million barrels per day in 101 to a record 9.19 million barrels per day, driven mostly by China's strong consumption following the lifting of Covid-<> restrictions.
But OPEC on Thursday cited risks of lower summer oil demand, partly due to a 1.16 million bpd cut in output.
Warnings
The International Energy Agency warned in its monthly report that the OPEC Plus decision could hurt consumers and the recovery of the global economy, and the report stated that "consumers facing inflation in the prices of basic materials will now have to squeeze their budgets further."
"This is strongly reflected in economic recovery and growth," the agency added.
The IEA said it expects a decline in global oil supply by 400,1 barrels per day by the end of the year, pointing to an expected increase in production of 4 million barrels per day from non-OPEC Plus, starting last March, compared to <>.<> million barrels per day that will be cut by the group's producing countries.