Oil prices tick up amid forecasts of slowing demand

The International Energy Agency is warning of oil demand weakening in Q4, which is sending energy markets higher.

Video transcript

- All right, Shawna. Well, let's also get you up to speed with what's happening with oil. We saw WTI ticking up today also Brent ticking up by around 2%. And RBOB Gasoline also joining them at about 1.5%. As you can see, Brent Crude up right now about just shy of 1% there.

Now this is all coming as the International Energy Agency predicts an increase in gas to oil switching, as high prices bite consumers this winter. Now they expect an average boost of 700,000 barrels per day from October 2022 to March of 2023 with that switch. Now that's double the levels from a year ago. But the outlook, though, is still precarious.

Now they see demand grinding to a halt in the fourth quarter and that's amid a global economic slowdown and, of course, a faltering Chinese economy. It's still trying to reopen while maintaining its zero-COVID policy. Now that bullishness for 2023 is based on the assumption that China will reopen fully and stronger air travel growth will boost jet fuel demand.

Energy companies enjoying gains across the board in markets today. Keeping an eye, though, on the meeting between China's President Xi and Russia's President Putin this week, on the sidelines of the summit of the Shanghai Cooperation Organization. We're expecting energy cooperation to be on the table for that, Dave.