Oil Loses More Steam After OPEC Cuts Demand Forecast

Oil prices dropped for a second day on Friday, pulling further back from a one-year high after OPEC again lowered its demand forecast and the International Energy Agency said the market was still over-supplied.
Brent crude was down 39 cents, or 0.6% at $60.75 a barrel, having dropped half a percent the previous session. US oil was down 44 cents, or 0.8% at $57.80 a barrel, after falling by 0.8% on Thursday, Reuters reported.
Both benchmarks closed on Wednesday at their highest levels since January 2020 after a nearly record-setting run of consecutive daily gains.
Oil prices have risen over the last few weeks as OPEC and other producers in the group known as OPEC+ cut production, while Saudi Arabia also promised unilateral reductions in output that started this month.
Oil demand around the world in 2021 will recover more slowly than earlier thought, the Organization of the Petroleum Exporting Countries said.
Previously, the International Energy Agency said oil supply was still outstripping demand globally, although Covid-19 vaccines are expected to help demand recover.
US crude inventories dropped unexpectedly last week, declining by more than 6 million barrels as refiners increased output to pre-pandemic levels, according to the Energy Information Administration.
Analysts in a Reuters poll had forecast a rise of nearly 1 million barrels.
Still, gasoline inventories increased more than expected, gaining by 4.3 million barrels in the last week, against forecasts of a 1.8 million rise.
Gasoline demand over the last four weeks is 10% below the same time last year.