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11/14/2023, 4:45 PM (Source: TeleTrader)
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Crude rises over 1.5% on strong demand outlook

Crude oil for front-month settlements jumped on Tuesday, with the upward movement in prices seemingly driven by the prospects of higher commodity consumption this year.

Namely, the International Energy Agency (IEA) raised its global demand growth estimate for both 2023 and 2024, with crude consumption in China expected to be the key driver of increased demand "fuelled by a booming petrochemical sector." The agency cautioned the global demand currently exceeds "available supplies" with the Northern Hemisphere slowly entering winter months. It appears that the cooler-than-expected inflation report in the United States further raised optimism about higher crude demand.

West Texas Intermediate (WTI) for December contracts surged 1.65% to $79.54 a barrel at 10:34 am ET. Brent for January deliveries climbed 1.58% to sell at $83.77 at the same time.

Baha Breaking News (BBN) / AB