Oil prices drop for a second day with market oversupplied

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Analysts expect aviation to be a major factor for oil demand, but see no improvement in the sector in the short term

London — Oil prices dropped for a second day on Friday, pulling further back from a one-year high after oil cartel Opec again lowered its demand forecast and the International Energy Agency said the market remains oversupplied.

Prices have risen over recent weeks, partly due to oil production cuts from Opec and other producers . This week, however, Opec said it expects global oil demand to recover more slowly than thought in 2021, trimming its forecast by 110,000 barrels per day to 5.79-million bpd. “The report paints a more pessimistic picture than market participants have presumably been envisaging, given the current high prices,” Commerzbank said.The number of people who travelled in China ahead of Lunar New Year holidays plummeted by 70% from two years ago as coronavirus restrictions curbed the world’s largest annual domestic migration, official data showed.

 

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