WTI falls back below $65 after IEA says a new oil super-cycle is unlikely

Dhwani Mehta FXStreet

Oil prices are unlikely to see a new super-cycle, the International Energy Agency (IEA) said in its latest monthly oil market report published on Wednesday, adding that a supply shortfall is also unlikely to be on the cards.

Additional takeaways

Stronger demand, OPEC+ output curbs point to sharp stock draws during H2.

There is more than enough oil to keep the market adequately supplied.

Oil inventories still look ample compared with historical levels.

Oil demand will return to 2019 levels by 2023.

Keeps global oil demand forecast steady for 2021.

Market reaction

WTI drops further below the $65 mark on the discouraging headlines from the IEA. The spot sheds 0.49% to trade at $64.47, as of writing.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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