USOIL | How will geopolitical tensions influence the price?

The West Texas Intermediate (WTI) price stands at around $72.70 per barrel during Thursday's Asian session, highlighting an upward trend supported by optimism generated by the Organization of the Petroleum Exporting Countries (OPEC). OPEC's monthly report anticipates robust growth in oil demand for 2024 and 2025, forecasting an increase of 2.25 million barrels per day (bpd) in 2024 and 1.85 million bpd in 2025. From a geopolitical perspective, disruptions in the supply chain in the Red Sea are preventing a more significant decline in crude oil prices, with attacks by Houthi forces in the area. The United States responded with strikes against the Houthi, and tensions escalated when the Houthi rebels targeted a U.S. ship. Internally, the American Petroleum Institute (API) reported an unexpected increase in weekly crude oil stocks, while the market awaits the upcoming Energy Information Administration (EIA) report, expected to show a decrease of 0.313 million barrels compared to the previous reading of 1.338 million barrels.