The main Fox Business Flash headlines are here. See what clicks on FoxBusiness.com.
Oil prices fell a second day Friday, adding to losses after OPEC lowered its demand forecast and the International Energy Agency said the market was still oversupplied.
Brent oil fell 47 cents, or 0.8% to $ 60.67 a barrel against 0309 GMT, after falling half a percent in the previous session. US oil fell 53 cents, or 0.9% to $ 57.71 a barrel, after falling 0.8% on Thursday.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Both benchmarks closed at their highest levels since January 2020 on Wednesday after nearly record consecutive daily gains.
Oil prices have risen in recent weeks as OPEC and other producers in the group known as OPEC + cut production, while Saudi Arabia also promised unilateral production cuts that began this month.
“OPEC production is likely to decline this month due to declines in Saudi Arabia and Libya. This should increase the global market deficit and support prices,” Capital Economics said.
Before the declines, the relative strength index of US crude oil was at its most over-bought level since the second Iraq war, said Bob Yawger, director of energy futures at Mizuho Securities.
THE OIL DEMAND WILL REACH ‘PRE-COVID LEVELS’: FORMER SHELL OIL PRESIDENT
“There are some signs that the market is preparing for a downturn,” he said.
Demand for oil around the world will recover more slowly in 2021 than previously thought, the Organization of the Petroleum Exporting Countries (OPEC) said.
Earlier, the International Energy Agency (IEA) said oil supplies are still outpacing global demand, although COVID-19 vaccines are expected to help restore demand.
BIDEN ADMINISTRATION APRON NEW OIL AND GAS LICENSES, RENT 60 DAYS
According to the Energy Information Administration, crude oil inventories fell unexpectedly last week, by more than 6 million barrels, as refineries increased production to pre-pandemic levels.
Analysts in a Reuters survey had predicted an increase of nearly 1 million barrels.
Still, gasoline stocks rose more than expected, by 4.3 million barrels in the past week, against a forecast of an increase of 1.8 million.
The demand for gasoline in the past four weeks is 10% lower than in the same time last year.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
(Reporting by Aaron Sheldrick; edited by Christopher Cushing)