IEA upgrades 2023 oil demand growth to 2.4 mln bpd
U.S. crude stocks rise unexpectedly API

LONDON, June 14Reuters Oil prices rose on Wednesday as investors awaited the outcome of the U.S. Federal Reserve39;s June meeting after bullish oil demand growth forecasts from the International Energy Agency IEA and OPEC.

Brent crude futures were up 76 cents, or 1, at 75.05 a barrel by 0916 GMT. U.S. West Texas Intermediate WTI crude was up 63 cents, or 0.9, at 70.05.

Both benchmarks climbed more than 3 the previous day on hopes of rising fuel demand after China39;s central bank lowered a shortterm lending rate.

Market participants expect the U.S. central bank39;s Federal Open Market Committee FOMC to pause interest rate hikes because of uncertainty over the economic outlook and the lagged effects of 10 rate increases since March 2022.

Higher interest rates strengthen the dollar, making commodities denominated in the U.S. currency more expensive for holders of other currencies. A pause in the Fed39;s rate increases would spur economic growth and oil demand, supporting prices.

Rates will most likely remain unchanged today when the Fed contemplates its next move, but the more salient question is whether this pause also means that the peak rate of the current cycle has been reached or not, said PVM Oil analyst Tamas Varga.

The IEA, meanwhile, increased its oil demand growth forecast for this year by 200,000 barrels per day bpd to 2.4 million bpd, lifting the projected total…