Environment

U.S. crude prices crack $81 as oil supply deficit forecast for 2024

The U.S. flag is displayed at Tesoro’s Los Angeles oil refinery in Los Angeles, California
Lucy Nicholson | Reuters

Crude oil futures rose on Thursday, adding to the previous session’s gains as the International Energy Agency now forecasts a supply deficit for 2024.

The West Texas Intermediate contract for April rose 86 cents, or 1.08%, to $80.58 a barrel. The Brent contract for May added 68 cents, or 0.81%, to $84.71 a barrel.

The move came after the IEA forecast a slight supply deficit for the year rather than a surplus, as the organization assumes OPEC+ will keep its production cuts in place through 2024. The cartel’s cuts of 2.2 million barrels per day are officially in place through at least the second quarter.

The IEA revised global demand growth upward by 110,000 barrels per day to 1.3 million bpd total.

Oil prices rose more than 2% Wednesday after Ukrainian drone attacks this week on Russian oil refineries. U.S. crude has gained 12% in 2024, while the global benchmark has gained 9.8%.

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