Oil Retreating After a Strong Rally

Oil prices retreated, giving back some of the strong recent gains they have made, on expectations of a slower economic recovery and speculation that market strength may entice producers like Saudi Arabia to reduce production.

Brent crude fell 35 cents, or 0.6%, to $ 61.12 a barrel with the opening of European markets, after touching the highest level since January 2020 on Wednesday.

The market is witnessing an increase as OPEC and its allies, under the OPEC + group, cut production and distribute protective vaccines against the Corona virus, which led to a revival of hopes for a recovery in demand.

U.S. West Texas Intermediate crude futures fell 34 cents, or 0.6%, to $ 58.34 a barrel.

Brent has risen over the past nine sessions, the longest period of continuous gains since January 2019. Yesterday, Wednesday, it witnessed an eighth consecutive day of rising for US crude.

US crude stocks fell for the third consecutive week last week, dropping 6.6 million barrels to 469 million barrels, the lowest level since March, according to the US Energy Information Administration.