WTI crude oil is trading at the highest since November after some modest resistance at the recent high of $88.07 gave way. The fresh high is $88.45 with little now standing in the way of $90 and beyond.
Oil daily
The IEA has grabbed some headlines today, writing that demand for natural gas, oil and coal will all peak before 2030. That’s sooner than projections a year ago because of new renewable technologies and changes in technology.
“In the last 10 years China accounted for about one-third of the growth in natural gas demand globally and two-thirds of the growth in oil demand,” IEA leader Faith Birol said. “Solar, wind and nuclear power will be eating up the potential growth of coal in China.”
Unfortunately the IAE has a spotty track record when it comes to predictions and has undershot real-world demand for more than a decade.
It’s unlikely the report will have any effect on near-dated oil prices, which are responding to a shortfall in the market of around 2 million barrels per day.
I don’t see any technical resistance until $90 or the November high of $93.74. Barring another SPR release, there isn’t much on the fundamental side to halt the gain, unless OPEC discipline breaks down. There are some eyes on China though as imports appear to be running unsustainable high.