Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Oil extends losses after gloomier outlooks from OPEC, IEA

Published by linker 5

Posted on February 12, 2021

Featured image for article about Top Stories

TOKYO (Reuters) – Oil prices fell a second day on Friday, extending losses after OPEC cut its demand forecast and the International Energy Agency said the market was still over-supplied.

Brent crude was down 34 cents, or 0.6% at $60.80 a barrel by 0102 GMT, having dropped half a percent the previous session. U.S. oil was down 36 cents, or 0.6% at $57.88 a barrel, after falling by 0.8% on Thursday.

Both benchmarks closed on Wednesday at their highest levels since January 2020 after a nearly record-setting run of consecutive daily gains.

Oil prices have risen over the last few weeks as OPEC and other producers in the group known as OPEC+ cut production, while Saudi Arabia also promised unilateral reductions in output that started this month.

“There are some signs that the market is setting up for a pullback,” said Bob Yawger, director of energy futures at Mizuho Securities.

U.S. crude’s relative strength index was at the most overbought level since the second Iraq war, Yawger noted.

Oil demand around the world in 2021 will recover more slowly than earlier thought, the Organization of the Petroleum Exporting Countries (OPEC) said.

Previously, the International Energy Agency (IEA) said oil supply was still outstripping demand globally, although COVID-19 vaccines are expected to help demand recover.

GRAPHIC: Demand/supply balance – https://fingfx.thomsonreuters.com/gfx/mkt/gjnpwzyrnvw/demandsupplyfeb.JPG

U.S. crude inventories dropped unexpectedly last week, declining by more than 6 million barrels as refiners increased output to pre-pandemic levels, according to the Energy Information Administration.

Analysts in a Reuters poll had forecast a rise of nearly 1 million barrels.

Still, gasoline inventories increased more than expected, gaining by 4.3 million barrels in the last week, against forecasts of a 1.8 million rise.

Gasoline demand over the last four weeks is 10% below the same time last year.

(Reporting by Aaron Sheldrick; Editing by Christopher Cushing)