Oil prices rise on OPEC deficit forecast

Oil prices rose on Thursday, recouping some of the previous session’s losses after OPEC forecast a supply deficit next year and the U.S. Federal Reserve said the economic outlook was favorable.

Prices had fallen on Wednesday after a report showed an unexpected increase in U.S. crude inventories.

The market picked up on Thursday, although the International Energy Agency (IEA) and The Organisation of the Petroleum Exporting Countries (OPEC) offered different prospects for the oil market in 2020.

Brent LCOc1 rose 41 cents, or 0.6 per cent, to 64.13 dollars a barrel by 1005 GMT. West Texas Intermediate crude CLc1 was up 22 cents, or 0.4 per cent, at 58.98 dollars a barrel.

IEA said on Thursday that global oil inventories could rise sharply despite an agreement by OPEC and its allies to deepen output cuts and expectations for lower production by the United States and other non-OPEC countries.

The market, however, focused more on OPEC which said it now expected a small deficit in the…

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