Oil’s longest winning streak in two years lost momentum following the International Energy Agency’s bleaker outlook for global demand and signs that futures were overbought.
Prices in New York declined less than 1% on Thursday after rising for eight straight days. The IEA said the re-balancing of the global oil markets remains “fragile” and cut its forecasts for world oil consumption in 2021 as the pandemic continues to limit travel and economic activity. Still, the market’s prospects look stronger in the second half of the year, and swollen oil inventories will drop sharply as fuel use picks up.
“Crude has shown some really strong gains,” said Gary Cunningham, director at Stamford, Connecticut-based Tradition Energy. But “there’s some questions as to whether or not these levels can be maintained” amid uncertainty over the demand recovery and the ability to keep supply in check.
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