Oil advanced, paring an eighth weekly decline, as the International Energy Agency lowered forecasts for supplies from outside OPEC and said prices could recover.
West Texas Intermediate crude rose as much as 3.6 percent in New York. The U.S. benchmark crude grade is heading for a loss of 2.4 percent this week, capping the longest run of weekly declines since March 1986. Non-OPEC oil producers will boost output this year at a slower rate than previously forecast, aiding a recovery in crude prices, the IEA said in its monthly market report.
“The IEA report is the first serious evidence that low oil prices are rebalancing the market,” Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by phone. “The price has probably gone down enough. We’ve rebounded a few times as prices have dropped and it will be interesting to see how things work out this time.”
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