WASHINGTON (dpa-AFX) - Crude oil prices fell sharply on Thursday, extending losses from the previous session, amid uncertainty about the outlook for demand, and on disappointment over OPEC and allies' decision to not increase the quantum of production cut for now.
Also, after recent strong rally, traders were reluctant to go long on oil contracts, and chose to take some profits.
Oil prices were also pressured by the release of weak U.S. data and news that Russia may lift its diesel ban in the coming days.
West Texas Intermediate Crude oil futures for November ended lower by $1.91 or about 2.3% at $82.31 a barrel.
Brent crude futures settled at $84.07 a barrel today, losing $1.74 or about 2%.
'Brent crude has fallen over $10 since the end of last month as surging global bond yields have crippled the global growth outlook. US gasoline demand destruction is intensifying and given how overbought the energy market was in September, momentum oil selling has been fierce,' says Edward Moya, Senior Market Analyst at OANDA.
'If China's outlook continues to improve, we could easily see a return back to the $90 level. Further bearishness could also trigger further output cuts by OPEC+. OPEC+ worked hard to get oil back to $90 a barrel and they will likely continue to do whatever it takes to make sure we don't see prices return to the lows of the year, which is around the $70 level,' Moya adds.
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