OPEC Forecast Buoys WTI, Brent Crude Oil Settlements on Tuesday

ArrowUp

Crude oil futures closed out Tuesday on a higher note as OPEC forecasted higher demand with lower production next year, according to Bloomberg MarketWatch.

August West Texas Intermediate crude climbed $2.04, or 4.6%, to end trading at $46.80 a barrel on the New York Mercantile Exchange, reaching its highest finish in nearly a week.

On London’s ICE Futures Exchange, September Brent crude rose $2.22, or 4.8%, to settle at $48.47 a barrel.

OPEC supply data reflected an increase of 264,000 barrels to 32.86 million barrels a day in June while demand is expected to swell to 33 million barrels a day in 2017, according to the Bloomberg report.

“This is in line with the Saudi view that the markets will be in balance sometime in the second half of the year. So, you have to call this a bullish report,” said James Williams, energy economist at WTRG Economics.

Meanwhile, August natural gas rose 3.2 cents, or 1.2% on the New York Mercantile Exchange to settle at $2.734 per million British thermal units.