WTI Crude Oil Continues to Weaken After OPEC, IEA Comments

WTI crude oil is extending its bearishness into early trading on Friday after OPEC slashed its oil demand forecast for the current year even

Arslan Butt•Friday, February 12, 2021•1 min read

WTI Crude Oil Continues to Weaken After OPEC, IEA Comments

WTI crude oil is extending its bearishness into early trading on Friday after OPEC slashed its oil demand forecast for the current year even as the IEA insisted that despite the deeper supply cuts, oil markets still experienced excess supply. At the time of writing, WTI crude oil is trading at around $57.80 per barrel.

During the previous session, WTI crude oil lost around 0.8% of its value, slipping lower after touching a 13-month high on Wednesday after rallying for several consecutive sessions. Oil prices had been strengthening over rising hopes that the global economy as well as demand for oil could soon recover on the back of stimulus measures and vaccine rollouts worldwide.

The OPEC group cautioned that oil demand was expected to improve at a slower pace than previously anticipated. The sentiment was echoed by the International Energy Agency’s recent comments about how the market is still oversupplied despite leading oil producers extending crude production curbs.

Earlier this week, the API and EIA had both reported a drop in US crude inventories against economists’ expectations for a build. Despite this, crude oil prices declined as gasoline inventories rose during the past week, with overall demand for the past four weeks still remaining 10% lower than the corresponding time last year.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.