Oil slumps, hitting six-week lows on revived supply concerns
Oil prices slumped on Wednesday, driving major benchmarks to their lowest closing levels since early October, after OPEC and the International Energy Agency warned of impending oversupply and rising COVID-19 cases in Europe increased the downside risks to demand recovery.
Brent crude futures fell $1.36, or 1.7%, to $81.05 a barrel by 12:18 p.m. EST (1718 GMT). U.S. West Texas Intermediate (WTI) crude futures settled at $78.36, down $2.40, a 3% decline.
The declines took Brent to its lowest close since October 1 and U.S. crude to its lowest settlement since October 7. Traders said the market’s recent action suggests funds are weighing a greater likelihood that supply will start to outpace demand in coming months, with sharp declines in near-term futures pointing to funds closing long positions.
