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Oil prices continue to fall amid market oversupply fears
Oil prices extended their losses on Thursday as investors grew increasingly concerned that global supply could soon outpace demand, mainly due to rising production from OPEC and its allies.
Brent crude for November delivery dropped 0.9% to $66.99 per barrel, while U.S. benchmark West Texas Intermediate (WTI) for October delivery declined 0.77% to $63.48. Analysts from Eurasia Group noted that “the persistence of high supply and moderate prices, even during times of tension, underscores the structural oversupply of the oil market.”
In recent months, the Organization of the Petroleum Exporting Countries (OPEC) and its partners — known as OPEC+ — have raised their daily output quotas by 2.2 million barrels. The group’s strategy aims to recover market share, even if production growth outpaces demand expansion.
Market speculation suggested that OPEC+ could announce further increases after a planned meeting among eight member states this Sunday. However, Russian Deputy Prime Minister Alexander Novak denied such reports, saying no decision had been made yet, according to Russia’s state news agency TASS.
Meanwhile, U.S. Energy Information Administration (EIA) data showed an unexpected rise of 2.4 million barrels in American crude inventories last week, compared with analyst expectations of a 1.9 million-barrel drop. The decline in fuel demand at the end of the summer travel season added further pressure to prices.