Oil Drops on Oversupply and Demand Concerns


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WTI crude oil futures declined by over 2% to close at $62.4 per barrel on Thursday, breaking a three-day upward trend due to concerns over US demand and fears of a global oversupply, which overshadowed geopolitical tensions in regions such as the Middle East and Ukraine. The International Energy Agency highlighted a stronger-than-anticipated rise in supply, propelled by increased output from OPEC+ countries, which confirmed plans to boost production starting in October. Compounding the situation, US crude oil stockpiles surprisingly increased by 3.9 million barrels in the past week. Additionally, Saudi Arabia’s oil exports to China are projected to rise to 1.65 million barrels per day in October, raising further supply worries, although doubts linger regarding the sustainability of China’s purchasing rate.




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