Oil falls on second day as OPEC, IEA warning ends rally

Oil prices dropped for a second straight day on Friday after OPEC slashed its demand forecast and the International Energy Agency said the market is oversupplied. 

Brent crude fell 0.8%, or 47 cents, at $60.67 per barrel after losing 0.5% in the last session. U.S. oil dropped 0.9%, or 53 cents, at $57.71 per barrel after sliding 0.8% on Thursday. 

Both contracts ended Wednesday at their highest levels since January 2020. OPEC expects oil demand for 2021 to recover slower than initially thought. 

Oil prices climbed over the past few weeks as OPEC and its allies slashed production, while Saudi Arabia pledged to reduce its output in February and March.

U.S. crude stocks sank unexpectedly last week, dropping over 6 million barrels. Still, gasoline stocks rose by 4.3 million barrels compared to analysts’ expectations for a 1.8 million climb.