Oil prices were supported by OPEC's forecast of strong demand and severe cold weather impacting U.S. production

(1) Oil prices traded in a narrow range on Thursday, temporarily holding on to overnight gains, as the Organization of the Petroleum Exporting Countries (OPEC) forecasted relatively strong growth in global oil demand over the next two years, and a cold snap in the United States disrupted some oil production. (2) Brent crude oil is currently up 0.17%, trading near $78.01 per barrel, and U.S. crude is currently trading near $72.81 per barrel, close to flat, and U.S. crude oil closed up 1.27% overnight. (3) OPEC said in its monthly report that global oil demand will increase by 1.85 million b/d to 106.21 million b/d in 2025. OPEC sees demand rising by 2.25 million b/d in 2024, unchanged from last month's forecast. (4) Meanwhile, North Dakota, the largest U.S. oil producer, said sub-zero temperatures in Fahrenheit had caused the state's oil production to drop by 650,000-700,000 b/d, less than half of its usual output. (5) The U.S. government's oil inventory data will be released later on Thursday. U.S. crude inventories unexpectedly rose by 480,000 barrels last week, according to the American Petroleum Institute (API). (6) International Energy Agency (IEA) Administrator Fatih Birol said at the Davos Global Market Forum on Wednesday that despite tensions in the Middle East, the IEA expects the oil market to be in a "comfortable and balanced state" this year. (7) Houthi attacks on ships in the Red Sea have forced many companies to detour their cargo transportation to Africa, increasing transportation time and costs. The United States on Wednesday launched a new round of strikes against Houthi targets in Yemen in retaliation for the latter's attacks on transport vessels. (8) The Houthis say their actions are in support of oppressed Palestinians