U.S. EIA Raises Forecast For 2023 World Oil Demand Growth By 50,000 Bpd, Now Sees 1.81M Bpd Yr-On-Yr Increase; Cuts Forecast For 2024 World Oil Demand Growth By 250,000 Bpd, Now Sees 1.36M Bpd Yr-On-Yr Increase
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The U.S. Energy Information Administration (EIA) has revised its forecast for world oil demand growth in 2023, increasing it by 50,000 barrels per day (bpd) to a year-on-year increase of 1.81 million bpd. However, the forecast for 2024 has been cut by 250,000 bpd, with a year-on-year increase now expected to be 1.36 million bpd.
September 12, 2023 | 4:05 pm
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NEUTRAL IMPACT
The revised forecast by the EIA could impact the United States Oil Fund (USO), which tracks the price of oil. The increased demand forecast for 2023 could potentially boost the fund, while the reduced forecast for 2024 might exert downward pressure.
The United States Oil Fund (USO) is directly influenced by the price of oil, which in turn is affected by global demand. The EIA's revised forecast indicates an increase in demand for 2023, which could potentially boost the price of oil and therefore the USO. However, the reduced forecast for 2024 could lead to a decrease in oil prices, potentially negatively impacting the USO.
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