Oil continue to pull back from 16-month high

Oil prices edged lower on Tuesday, with WTI settling below $51/bbl, as the post-OPEC deal rally paused following four days of gains.

US crude oil finished the day at $50.93 a barrel, down 1.66% on the day. It had reached an intraday high of $52.42 on Monday, the highest since July 2015.

Oil prices climbed about 15% over the last sessions after the Organization of the Petroleum Exporting Countries agreed to cut output in an attempt to reduce the market oversupply. The deal will take effect from January 2017 and will include some non-OPEC producers.

On Tuesday, the US Energy Information Administration (EIA) raised its oil prices forecasts for 2016 and 2017 on Tuesday.

In its monthly energy outlook report, EIA forecast WTI prices at $43.07 a barrel for this year and $50.66 for next year, up 0.6% and 1.5%, respectively, from last month estimations. Brent crude is forecast at $43.46 in 2016 and $51.66 in 2017, also up 0.4% and 1.5%, respectively from November’s report.