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Oil Drops With IEA Demand Outlook Pointing to Weakness Ahead

  • Agency reduces estimates for almost every quarter until 2022
  • Market should still tighten as OPEC limits oil output
Views Of Largest U.S. Oil Hub As Stockpile Growth Slows
Photographer: Daniel Acker/Bloomberg
Updated on

Oil fell the most in nearly a week as investors assessed the International Energy Agency’s reduced forecasts for global oil demand in part due to a slowdown in air travel.

U.S. crude futures lost steam and declined 1% on Thursday after closing at a five-month high on Wednesday. The IEA reduced its demand estimates for almost every quarter through to the end of next year. Air travel remained two-thirds lower than last year in July, normally a peak month because of holiday flying, it said in a monthly report.