According to the draft report of the Organization of the Petroleum Exporting Countries (OPEC), shared by Reuters, the cartel left its forecasts for the growth of global oil demand in 2026 and 2027 unchanged. The organization noted that ongoing geopolitical developments require close monitoring, but said it was too early to determine whether they could significantly impact its global economic growth forecasts.

On the supply side, the report showed that oil production by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) averaged 42.72 million barrels per day in February, up 445,000 barrels per day from January.

Saudi Arabia also provided updated data on its production and market supply. Riyad told OPEC that oil supply to the market reached 10.111 million barrels per day in February, while production was higher at 10.882 million barrels per day.

These developments came shortly after several major economies signaled their intention to release strategic oil reserves. Japan had previously confirmed that it planned to start releasing some of its reserves as early as March 16, ahead of the formal recommendation from the International Energy Agency (IEA), while Germany also indicated that it would release some of its strategic reserves.

According to Reuters, the IEA is expected to announce a recommendation later in the day regarding the potential release of strategic petroleum reserves.

Market reaction

WTI US crude oil remains volatile on Wednesday, fluctuating without a clear direction, and has been trading between $82 and $88 since the beginning of the European session.