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Oil futures lost ground early Thursday, pulling back from two-week highs as investors assessed the supply outlook.
Price action
-
West Texas Intermediate crude for May delivery
CL00,
-1.19% CLK22,
-1.19%
was down $1.21, or 1.2%, at $103.04 a barrel on the New York Mercantile Exchange. -
June Brent crude
BRN00,
-1.23% BRNM22,
-1.23% ,
the global benchmark, fell $1.42, or 1.3%, to $107.36 on ICE Futures Europe. Both Brent and WTI ended at their highest since March 30 on Wednesday, based on front-month contracts.
Market drivers
Oil has rallied this week despite monthly reports from the Organization of the Petroleum Exporting Countries and the International Energy Agency that both cut forecasts for growth in global demand crude, while IEA raised its outlook for non-OPEC supply, putting the oil market on track to be balanced in the second half even without the release of strategic reserves, said Carsten Fritsch, analyst at Commerzbank.
Analysts said worries about supplies as hopes for a settlement of the Russia-Ukraine war continued to underpin the market.
Volumes were expected to be subdued at the end of a holiday-shortened week, with most markets set to be closed on Good Friday.
