Oil prices rise to new 2024 highs The International Energy Agency predicts a supply shortage this year

Oil prices rose to their highest close since 2024 after the International Energy Agency (IEA) warned that the oil market could face a supply gap throughout the year. WTI closed above $81 a barrel, its highest level since November last year, breaking through the key psychological barrier of $80. WTI crude futures for April delivery rose 1.9% to settle at $81.26 a barrel, while Brent crude futures for May delivery rose 1.7% to settle at $85.42 a barrel. The IEA has reversed previous forecasts of oversupply and now expects a supply shortage in the market if OPEC+ continues to cut production in the second half of the year. Oil prices are up about 13% year-to-date, but have been in a tight range for the past three months. While OPEC+'s production cuts are showing signs of tighter supply in the near term, production is up outside the organization and traders remain concerned about demand. Despite the recent move higher, traders have shown caution about chasing the rally, with rapid gains in recent months often leading to sell-offs.