Receive our newsletter – data, insights and analysis delivered to you
  1. News
February 12, 2021

Oil prices fall after OPEC lowers demand forecast

Oil prices fell after the Organisation of Petroleum Exporting Countries (OPEC) lowered its demand forecast and the International Energy Agency stated that the oil market continues to over-supplied.

By Shalini Nair

Oil prices fell after the Organisation of Petroleum Exporting Countries (OPEC) lowered its demand forecast and the International Energy Agency stated that the oil market continues to over-supplied.

Brent crude fell by $0.39, or 0.6%, to $60.75 a barrel while US oil dropped by $0.44, or 0.8%, to reach $57.80 a barrel, reported Reuters.

Oil prices have been high over the last few weeks as the OPEC and its allies, known as OPEC+, reduced production while Saudi Arabia promised a voluntary output cut from this month.

Capital Economics was quoted by the news agency as saying: “OPEC production is likely to fall this month led by declines in Saudi Arabia and Libya. This should deepen the global market deficit and support prices.”

Demand for oil around the world this year is expected to recover more slowly than previously thought, OPEC said.

The International Energy Agency (IEA) stated that even though Covid-19 vaccines are expected to aid recovery of demand, currently the supply is still more than the demand across the world.

Content from our partners
Green investment: What gives Scotland multiple advantages
How the North of Tyne region is leveraging its legacy to define its future
Q&A with Chevron Lubricants’ Paul Sly, global industrial OEM specialist, and Nathan Knotts, global brand technical manager

Earlier this week, Energy Information Administration stated that crude stocks fell 6.6 million barrels to 469 million barrels last week, for a third consecutive week, marking their lowest since March.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU