Oil fell towards $50 a barrel on Tuesday on forecasts of slower demand recovery and tightening coronavirus lockdowns in Europe, reports Reuters. Brent crude declined by 2 cents to $50.27 a barrel at 0910 GMT, but U.S. West Texas Intermediate (WTI) crude was up 2 cents at $47.01.
- Oil forecasters project global demand to pick up in the second half of next year rather than at the beginning.
- Oil recovered recently, with Brent reaching $51.06 on December 10, its highest since March, supported by hopes of demand recovery and vaccine releases.
- On Tuesday, the International Energy Agency trimmed oil demand estimates and suggested that vaccine impacts on recovery is several months away.
- On Monday, OPEC+ said oil demand would rise slowly than expected in 2021 and delayed meetings scheduled for this week until early January
Oil futures are currently gaining. CL! is up 0.51%.