- Oil prices are higher today, around $77.50, extending gains from yesterday
- The US Consumer Price Index came in higher than expected, potentially weakening the Federal Reserve’s case for lowering interest rates
- IEA says oil supply will match demand this year (BBG)
- Global oil consumption is expected to increase by 1.2 to 1.3 MMBbl/d, a much weaker pace of growth than in 2023
- The Executive Director of the IEA said in an interview, “So in the absence of major geopolitical turmoil or extreme weather events, we would expect a rather comfortable oil market and moderate oil price evolution throughout 2024”
- The IEA will release its next monthly evaluation of the oil market on February 15
- OPEC report shows production cuts only partially instituted (BBG)
- While Kuwait and Algeria have reduced production, Iraq is still producing more oil than they agreed to
- Uneven compliance creates a challenge for OPEC, as it seeks to keep oil prices stabilized
- Output from OPEC’s 12 members fell by 350 MBbl/d in January, but almost half of the reduction came from a pipeline disruption in Libya
