NEW YORK: Oil prices fell sharply on Thursday, sliding about 2% as worries over a potential glut and weakening US demand outweighed supply risks stemming from conflicts in the Middle East and Ukraine.
Brent crude futures declined $1.12, or 1.7%, to close at $66.37 a barrel, while US West Texas Intermediate (WTI) fell $1.30, or 2%, to $62.37. The International Energy Agency (IEA) warned in its monthly report that global supply will grow faster than expected this year due to planned OPEC+ output hikes.
Analysts said the market remains torn between oversupply risks and geopolitical threats. OPEC leader Saudi Arabia is set to raise crude exports to China to 1.65 million barrels per day in October, up from 1.43m bpd in September. However, concerns linger about China’s ability to absorb surplus supply, while investors also monitor sanctions targeting Russian oil.
Meanwhile, Russia’s oil revenues slumped in August to one of the lowest levels since the Ukraine war began. Separately, India’s Adani Group has banned tankers sanctioned by Western nations from entering its ports, a move that could disrupt Russian crude flows to Indian refiners.
By Reuters
