Oil prices fell about 1 percent on Friday to extend losses from the previous session after OPEC cut its demand forecast and the International Energy Agency said the re-balancing of the global oil markets remains “fragile.”
Benchmark Brent crude fell 62 cents, or 1 percent, to $60.52 a barrel, after having fallen half a percent in the previous session. U.S. oil futures were down 65 cents, or 1.1 percent, at $57.59 a barrel after declining 0.8 percent on Thursday.
Both benchmarks closed on Wednesday at their highest levels since January 2020 after a nearly record-setting run of consecutive daily gains.
In its February Oil Market Report, OPEC said it expects oil demand to rise by 5.8 million barrels per day (bpd) this year, down by around 100,000 bpd from last month’s projection due to extended lockdowns and the re-introduction of partial lockdowns in a number of countries.
The International Energy Agency said in its latest monthly report that the market was still over-supplied, although Covid-19 vaccines are expected to help demand recover in the second half of this year.