Crude oil prices moved up on Monday, gaining for a third successive session, amid some optimism about the outlook for energy demand following reports from OPEC and Goldman Sachs.
A report from the OPEC saying that demand in the U.S. and China is not lowering to the point of concern contributed as well to the rise in oil prices.
A weak dollar helped too. The dollar index dropped to 105.59 ahead of the crucial U.S. inflation data, due on Tuesday.
West Texas Intermediate Crude oil futures for December ended higher by $1.09 or about 1.4% at $78.26 a barrel.
Brent crude futures were up $1.26 or about 1.55% at $82.69 a barrel a little while ago.
In its monthly report, ??OPEC has raised its forecast for world oil demand growth in 2023 to 2.46 million barrels per day, up 20,000 from the previous forecast. OPEC sees demand rising by 2.25 million bpd next year, unchanged from last month.
“The OPEC monthly oil market report appeared to push back against demand concerns, referencing overblown negative sentiment around Chinese demand. The question now is whether OPEC+ members Russia and Saudi Arabia will push back with cuts beyond December,” says Craig Erlan, Senior Market Analyst at OANDA UK & EMEA.