Oil: Prices rise on International Energy Agency forecast: ‘tide will turn’

Brent crude and West Texas Intermediate extended gains. Brent Crude added +2.80%, currently trading at USD49.62 a barrel. West Texas Intermediate rose by +2.18% currently quoted at USD47.26 as the International Energy Agency cut forecasts for supplies outside the OPEC by 350,000 barrels a day, the first cut since July and stated that prices could rise as the slow-down in output will rebalance prices. The Agency added that prices may fall further before they recover but a reversal in the trend is possible this year.

The global glut continues in 2015 and a low global demand weighs amid record output from U.S. shale drillers - U.S. crude production increased by 60,000 barrels a day last week according to the EIA and stockpiles expanded. Both major brands lost more than 50% of their value since mid-2014 but the OPEC, responsible for 40% of worldwide oil-production, decided to leave output-rates unchanged around 30 million barrels a day and repeatedly reaffirmed not to change policy in the fight for market share. Record Russian output not seen since the end of the Soviet Union further adds to the downward pressure on oil prices.