Tighter Supply, World Oil Prices Rise Slightly

JAKARTA - World oil prices rose slightly at the end of trading Friday, April 14 local time. This keeps its rise throughout the fourth week in a row.

The increase follows the International Energy Agency (IEA) warning of a stricter supply outlook this year.

Citing Antara, West Texas Intermediate (WTI) crude futures for May delivery rose 36 cents, or 0.44 percent, to settle at 82.52 dollars a barrel on the New York Mercantile Exchange.

Brent crude futures for June delivery, up 22 cents, or 0.26 percent, were closed at 86.31 dollars a barrel on the London ICE Futures Exchange.

World oil demand will rise 2 million barrels per day in 2023 to a record high of 101.9 million barrels per day, said a monthly report on the oil market released by the IEA on Friday (14/4/2023).

The Organization of Oil Exporting Countries (OPEC) and its partners will push world oil supply down 400,000 barrels per day by the end of 2023, the IEA said.

The surprising supply cuts announced by OPEC and its partners on April 2, risk exacerbating the expected oil supply deficit in the second half of 2023 and driving oil prices as economic uncertainty increases, even as industrial activity slows down in the world's largest economies and production growth beyond the alliance looks strong, the IEA reports warn.

In addition, the number of active oil drilling rigs in the United States and Canada recorded a decline from week to week of two and seven rigs, respectively, according to data released by Houston-based oilfield services firm Baker Hughes on Friday (14/4/2023).

"Oil prices are trying to stabilize near the highs recently while traders are waiting for additional catalysts," said Vladimir Zernov, analyst of the FX Empire market information supplier.