Oil rises today with signs supporting demand in the United States.

Oil prices rose on Thursday after a report from the American Petroleum Institute showed an unexpected drop in U.S. oil inventories, while the International Energy Agency kept its demand forecasts for 2024 unchanged.

In trading, January Brent crude futures rose by 0.95% to $72.97 a barrel, while December West Texas Intermediate crude futures increased by 1.04% to $69.14 a barrel.

What influenced oil prices today?

In its weekly report released today, the American Petroleum Institute reported that U.S. oil inventories fell by 0.78 million barrels last week, while analysts had expected an increase of 1.0 million barrels in inventory levels. The U.S. Energy Information Administration is set to release official inventory data later today, one day later than usual due to Veterans Day holiday.

In its monthly report on the oil market also released today, the International Energy Agency maintained its forecast for crude oil demand growth in 2024 at 0.92 million barrels per day, exceeding 2023 levels, with another increase expected of 0.99 million barrels per day in 2025.

The agency noted that global oil inventories continue to decline, but it expects production to begin outpacing supply next year, predicting an increase in output from non-OPEC countries by 1.5 million barrels per day, while demand from China remains weak.

In the Short-Term Energy Outlook released by the U.S. Energy Information Administration on Wednesday, the agency also projected that supply would exceed demand starting in the second quarter of next year.