NY Fed Oil price dynamics report: Higher demand pushed up oil prices

The New York Fed is out with its latest oil price dynamics report for this week, with the key highlights found below.

“Higher demand pushed up oil prices.

• Despite a small increase in anticipated supply, rising global demand expectations caused oil prices to increase over the week. In 2017: Q4, robust global demand expectations continued to exert upward pressure on oil prices.
• Developments in global demand expectations since 2017: Q3 have reversed the largely supply-induced weakness in oil prices throughout the first half of 2017.
• Overall, since the end of 2014: Q2, both lower global demand expectations and looser supply have held oil prices down, though this trend seems to have reversed in 2016: Q2 and 2016: Q4, and notably since 2017: Q3.”