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.

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.