Oil prices fell on Thursday, extending losses as investors braced for increased supplies after a compromise deal between leading OPEC producers and as US fuel stocks rose, raising concerns over demand in the world’s largest consumer.
Brent crude dropped 66 cents, or 0.9%, to $74.10 a barrel and US West Texas Intermediate (WTI) crude was down 61 cents, or 0.8%, at $72.52.
Both benchmarks slid more than 2% on Wednesday after Reuters reported that Saudi Arabia and the UAE had reached a compromise that should pave the way for a deal to supply more crude to a tight oil market and cool soaring prices.
“The market is not taking any chances. Prices are overbought anyway, so traders might want to take some money off the table before the deal is concrete,” said Phillips Futures in Singapore Senior Commodity Trader Avtar Sandu. Talks among the OPEC and allies including Russia, a group known as OPEC+, had broken down this month after the UAE objected to an extension to the group’s supply pact beyond April 2022.
Published in The Express Tribune, July 16th, 2021.
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