Oil remains sharply higher as stock market surge defies IEA warning

Oil held on sharply higher as a risk-on mood prevailed across markets and signs that OPEC+ countries were willing to cut supply masked the IEA's gloomy demand outlook.

Brent crude is trading just below $83 per barrel after rising 1.5% on Thursday, while West Texas Intermediate is trading near $78, its highest since mid-November. It was done. Oil's rally came as U.S. stocks closed at a new record and a weakening dollar made the commodity more attractive to overseas buyers.

Oil prices are trading near the top of their narrow ranges this year, with both benchmarks on track for their fourth weekly gain in the past five weeks. Still, the Paris-based International Energy Agency has highlighted concerns that global demand growth could lose momentum and leave the oil market in surplus for the year.

OPEC+ has implemented supply cuts to support prices. Russia has almost reached its voluntary reduction target for the first time since pledging last year, according to Bloomberg calculations based on official data from January. Elsewhere, Iraq and Kazakhstan pledged to stick to their targets after failing to fully cut production promised last month.

In the Middle East, an escalating gunfight between Hezbollah and Israel has further intensified cross-border fires this week, raising fears of a wider war. In Gaza, Israel arrested dozens of Hamas fighters at Nasser Hospital, where hand grenades and mortar shells were found.

Meanwhile, in fuel markets, traders are focused on the impact of Red Sea disruptions and refinery outages that have constrained supplies. Benchmark diesel and gasoline futures prices have increased by double digits since the beginning of the year, with crude oil prices up about 7%.

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