Oil is heading to record gains for the fourth consecutive week

Al-Anbat – Dema Hina

Oil prices are heading for a fourth consecutive week of gains after the International Energy Agency said global demand will rise to a new record this year, supported by a recovery in consumption in China, despite the dollar's rise on Friday.

The agency also warned that production cuts announced by OPEC+ producing countries could increase the oil supply deficit and harm consumers.

By 15:09 GMT on Friday, Brent Crude futures were down 1 cent to $86.08 per barrel, while U.S. West Texas Crude futures were up 30 cents to $82.46 per barrel, according to global news agencies.

The International Energy Agency said in its monthly report on Friday, that global oil demand is set to rise by two million barrels per day in 2023 to a record level of 101.9 million barrels per day, driven mostly by China's strong consumption after COVID-related restrictions were lifted.

The agency added that the demand for jet fuel represents 57% of the increase in demand in 2023.

On Thursday, OPEC indicated the risks of a decline in oil demand in the summer due, among other things, to a production cut of 1.16 million barrels per day.

The International Energy Agency said in its monthly oil report released on Friday that the OPEC+ decision could harm consumers and the recovery of the global economy.

The agency stated that it expects a decrease in global oil supply by 400,000 barrels per day by the end of the year, noting an expected increase in production of one million barrels per day from outside OPEC+, starting in March, compared to 1.4 million barrels per day, which will be reduced by the producing countries in the group.