The price of oil rose by another 0.7% after yesterday's rally, while investors continue to monitor the situation in the Middle East. Oil output disruptions caused by cold weather in the U.S. also affected prices.
The United States has launched several strikes against Houthi targets in Yemen, but the group continues to threaten shipping off the coast. US President Joe Biden said the US strikes would continue. In addition, Pakistan launched strikes on separatist militants inside Iran on Thursday in a retaliatory attack.
While tensions in the Middle East have not affected oil production, supply disruptions continue in Libya, and about 40% of oil production in North Dakota remained shut due to extreme cold.
Oil is also supported by the negative dynamics of the US currency. The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.15% to 103.38.
In addition, the forecasts of the International Energy Agency (IEA) remain in focus. Yesterday, the IEA said today that supplies from the United States, Brazil, Canada and Guyana will lead to another year of active oil inflows from outside the OPEC+. The IEA expects oil demand to increase by 1.24 million barrels per day in 2024, to 102.959 million barrels per day. This forecast was higher than the previous estimate, presented in December, by 180 thousand barrels per day. Despite its higher demand growth forecast, the IEA's projection is half that of producer group OPEC.