Oil holds near four-month high as IEA flips forecast to deficit

Oil held near a four-month high after the IEA forecast a supply deficit through 2024, changing its earlier projection of a surplus, on the premise OPEC+ maintains production cuts.

Brent edged lower to near $85 a barrel after rising 4.3% over the previous two sessions. West Texas Intermediate was close to $81. The International Energy Agency assumes that OPEC and its allies will retain their curbs for the rest of the year to “balance oil markets,” it said in a report Thursday.

The global crude benchmark is up by around 4% this week, having also been supported by a drop in US stockpiles and heightened geopolitical tensions after Ukraine attacked another Russian refinery.Crude futures have now broken out of a narrow range they had been trading in this year, although there are still headwinds that may limit further gains. These include rising non-OPEC supply, demand concerns around China and persistent US inflation that’s pushing back expectations for when the Federal Reserve will cut interest rates.