: EIA expects global oil inventories to fall over the next 15 months, but demand concerns remain

The U.S. Energy Information Administration on Tuesday said it expects global oil inventories to decline over the next five quarters, following the Organization of the Petroleum Exporting Countries’ decision to extend its oil output cuts through 2024 and Saudi Arabia’s extension of its voluntary cuts through August. The EIA’s monthly Short-term Energy Outlook report, however, left the Brent and West Texas Intermediate oil price forecasts for 2024 unchanged, as “ongoing concerns regarding weakening global economic conditions continued to limit expectations for global oil demand growth, which countered upward price pressure from tighter near-term oil supplies.” For 2024, the EIA pegged its 2024 Brent price forecast at $83.51 a barrel and WTI forecast at $78.51, with both unchanged from the June forecasts. In Tuesday dealings, August WTI oil CLQ23 traded at $74.64 a barrel on the New York Mercantile Exchange, up $1.65, or 2.3%. September Brent crude BRNU23 added $1.52, or 2%, to $79.21 a barrel on ICE Futures Europe.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.