Oil prices fell for a second consecutive day on Friday morning as major forecasters warned that global demand recovery was still fragile and that the US dollar was strengthening.
As of 9:51 ET on Friday, WTI Crude fell 0.07 percent to $ 58.24 and Brent crude traded slightly up 0.23 percent at $ 61.33.
The International Energy Agency (IEA) warned on Thursday that the rebalancing of the oil market in the first quarter of 2021 looks fragile, although it remains optimistic that world oil supplies will decline rapidly in the second half of this year as demand rises . This year, the world’s demand for oil is expected to grow by 5.4 million barrels per day (bpd), compared to 2020, the agency said in its detailed oil market report for February. This is 100,000 bpd lower than the forecast in the January report when the IEA expected demand to rise by 5.5 million bpd per year in 2021.
OPEC also warned on Thursday of a weaker start to the year, expecting oil demand to rise by 5.8 million bpd in 2021, by about 100,000 bpd compared to last month’s forecast due to the closure of major developed economies in the first half of this year.
Oil prices ended their nine-time rise on Thursday – the longest series of consecutive daily rises in two years – as the market swallowed warnings of weak demand in the first quarter, and a growing number of analysts said technical indicators indicated on overbought conditions. Related: The most fragile oil price rally in history
Torbjörn Törnqvist, CEO of one of the largest independent oil traders in the world, Gunvor, told Bloomberg last week that oil prices are not likely to rise above $ 60 a barrel, as this price level will encourage a lot of oil supplies, including from the United State.
Amrita Sen, chief oil analyst at Energy Aspects, does not rule out $ 100 oil next year, but she also believes the market has advanced itself in terms of quick fundamentals, “because demand is still relatively weak at present. “
The current oil price strength depends on a continued self-control of the OPEC + group of producers supported by a ‘paper’ demand from speculators, ‘Saxo Bank said early Friday.
By Tsvetana Paraskova for Oilprice.com
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