UPDATE 9-Oil slips after IEA lowers 2020 demand forecast

(Updates to settlement)
By Devika Krishna Kumar
NEW YORK, Aug 13 (Reuters) - Oil prices eased on Thursday
after the International Energy Agency lowered its 2020 oil
demand forecast due to unprecedented travel restrictions to
fight the coronavirus, but resilience in equities markets and a
weak dollar limited losses.
Brent crude LCOc1 ended the session down 47 cents, or 1%,
at $44.96 a barrel while West Texas Intermediate (WTI) CLc1
settled down 43 cents, or 1%, at $42.24 a barrel.
The International Energy Agency cut its 2020 oil demand
forecast and said reduced air travel due to the pandemic would
lower global oil consumption this year by 8.1 million barrels
per day (bpd).
The Organization of the Petroleum Exporting Countries (OPEC)
said that world oil demand will fall by 9.06 million bpd this
year, more deeply than the 8.95 million bpd decline expected a
month ago. "Overall, neither yesterday's OPEC or today's IEA release
appeared to have much effect on an oil market that is still
primarily focused on the ongoing expansion in risk appetite that
remains undeterred by lack of progress in formulating a viable
U.S. stimulus deal," said Jim Ritterbusch of Ritterbusch and
Associates.
Wall Street has recovered most of the trillions in market
capitalization lost early in the pandemic, and the S&P 500
.SPX index briefly traded on Thursday above its record closing
high.
The dollar fell to its lowest in a week against a basket of
currencies. A weaker dollar makes oil cheaper for holders of
foreign currencies. Investors across asset classes are still awaiting a
breakthrough on another U.S. stimulus package and keeping watch
on frayed U.S.-China ties ahead of trade talks on Aug. 15.
Russian Energy Minister Alexander Novak said he did not
expect hasty decisions on output cuts when a monitoring
committee of OPEC and its allies, known as OPEC+, meets next
week because the oil market has been stable. Last month OPEC+ eased the cuts to around 7.7 million bpd
until December from a previous reduction of 9.7 million bpd,
reflecting a gradual improvement in global oil demand.
Prices found some support as U.S. crude oil, gasoline and
distillate inventories dropped last week as refiners ramped up
production and demand improved, a government report showed.
EIA/S
Oil prices have been range-bound since mid-June, with Brent
trading between $40 and $46 per barrel, and WTI between $37 and
$43 per barrel.
"The market moved from chronic oversupply in April-May to a
deficit by June," said Ehsan Khoman, head of MENA research and
strategy at MUFG. "The underlying oil market deficit is becoming
more evident and, along with a broader reflation narrative, is
keeping oil prices on an even keel."


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Demand/supply balance https://tmsnrt.rs/3aptIIv
Global Oil Supply https://tmsnrt.rs/3iCYGzP
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