Oil prices on track for 3rd consecutive week of gains

C rude oil prices were set for a third week of increases on Friday, lifted by the growing imbalance between demand and supply, and by China’s latest industrial output report, which showed faster-than-expected growth in August.

Brent crude was trading above $94 per barrel at the time of writing while West Texas Intermediate flirted with the $91 per barrel mark, Oil Price reported.

Bullish sentiment only increased on the news that Chinese refiners broke refining rate records in August.

They processed an average daily of 15.23 million barrels, which was 19.6 per cent higher than a year ago, official statistical data showed, Oil Price reported.

The main reason for the price jump, however, remains the production cut coordinated by Saudi Arabia and Russia.

The International Energy Agency in its latest monthly report warned that cuts would tip the oil market into a deeper imbalance in the fourth quarter.

At the same time, the International Energy Agency (IEA) forecasted peak oil demand before 2030, which prompted an immediate reaction from OPEC.

Consistent data-based forecasts show that peak oil and other fossil fuel demand will not happen before 2030, as the IEA claimed earlier this week, OPEC said on Thursday, dismissing the claims of the “beginning of the end of fossil fuels”, Oil prices reported.

Indeed, warnings about peak oil demand have been numerous in recent years, all based on EV penetration rates that have so far failed to materialise.

Instead, global oil demand has continued to rise, hitting a record this year, per the IEA itself. And oil trade is getting more popular, too.

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