Brent fell to $60.76 amid deterioration in IEA and OPEC forecasts

Prices for benchmark oil continued to decline during trading on Friday, breaking the longest period of growth in more than two years the day before, Interfax reports.

The pressure on the quotations on Thursday, February 11, had concerns about the prospects for oil demand after the deterioration of forecasts of the International Energy Agency (IEA) and OPEC.

The cost of April futures for Brent oil on the London ICE Futures exchange on Friday amounted to $60.76 per barrel, which is $0.38 (0.62%) below the price at the close of the previous session. As a result of trading on February 11, these contracts fell by $0.33 (0.5%) to $61.14 per barrel, demonstrating the maximum decline since January 22 after growing for nine consecutive sessions.

The price of futures for WTI crude oil for March in electronic trading on the New York Mercantile Exchange (NYMEX) fell to $57.82 per barrel, which is $0.42 (0.72%) below the level at the close of the previous trading. On Thursday, futures fell in price by $0.44 (0.8%) to $58.24 per barrel, which was the strongest fall in two weeks after rising for eight sessions in a row.

For both grades, these were the longest periods of continuous growth since January 2019, according to the Dow Jones. Both Brent and WTI closed trading on Wednesday, February 10, at their highs since January 2020.

In 2021, OPEC expects an increase in oil consumption by 5.8 million bpd, which is 100 thousand bpd less than the forecast of the previous month – up to 96.05 million bpd.

Meanwhile, the IEA has cut its forecast for global oil demand in 2021 by 100,000 bpd to 5.4 million bpd.

Global demand this year will reach 96.4 million bpd, recovering about 60% of the volume lost to the pandemic in 2020, the agency writes in its report.

Oil quotations have shown a steady rise since the beginning of 2021, which is explained by optimism about the coronavirus vaccination process, besides, the expectations of additional measures to help the US economy have supported quotations in recent days, MarketWatch writes.

Besides, as noted, the OPEC+ countries mainly fulfil their obligations under the agreement to limit oil production.

Tags: oil, coronavirus, OPEC, The Ministry of Economy, price, oil reserves, market, COVID‑19 vaccine

Read also

Brent fell to $63.09 per barrel
Brent went down to $62.81 amid growing US gasoline inventories
Saudi Aramco agrees to sell up to 49% of the oil pipeline business