Oil futures lost ground Wednesday, after the International Energy Agency deemed a supercycle for the commodity unlikely in its latest forecasts, while traders looked ahead to official data on U.S. crude inventories after an industry group reported a fall in stocks.

West Texas Intermediate crude for April delivery fell 60 cents, or 0.9, to 64.20 a barrel on the New York Mercantile Exchange. May Brent crude was down 78 cents, or 1.1, at 67.61 a barrel on ICE Futures Europe.

The IEA bolstered its forecast for 2021 demand growth by 100,000 barrels a day, while cutting its outlook for U.S. supply. But despite extended and deepened production cuts by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC, and forecasts for supply shortfalls in some parts of the market, oil inventories still look ample compared with historical levels despite a steady decline from a massive overhang that piled up during the second quarter of 2020, the Parisbased organization said in its monthly report.

In a separate report on the medium term outlook, the IEA said the forecast for global oil demand has shifted lower, and could peak earlier than previously thought if an increased focus on cleanenergy initiatives by governments translate into stronger policies and behavioral changes resulting from the pandemic become ingrained.

We have seen some selling on the back of this report as traders believe that oil price this high is going to destabilize the supply, by…