Oil prices extend rapid slide on demand worries

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Oil prices extend rapid slide on demand worries
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HOUSTON: Oil prices fell about 2% on Thursday (Oct 5), extending the previous session’s losses of nearly 6%, as worries about fuel demand outweighed a...

The entrance to the Big Spring Refinery in Big Spring, Texas. The US oil industry is headed towards a record-breaking year as analysts expect the crude market to continue climbing despite minor slowing. – AFPpicOil prices fell about 2% on Thursday , extending the previous session’s losses of nearly 6%, as worries about fuel demand outweighed an Opec+ decision to maintain oil output cuts, keeping supply tight.

Brent futures settled US$1.74, or 2.03%, lower at US$84.07 , while US West Texas Intermediate crude futures were US$1.91, or 2.3%, lower at US$82.31 . It made no changes to the group’s oil output policy, and Saudi Arabia said it would maintain a voluntary cut of one million barrels per day until the end of 2023, while Russia would keep a 300,000 bpd voluntary export curb until the end of December.

Long positions established in anticipation of US$100 a barrel are being liquidated, said Andy Lipow, president of Lipow Oil Associates LLC. US heating oil futures fell more than 5% on expectations that a Russian fuel export ban introduced last month would be lifted soon and supply disruptions would be less severe than markets had anticipated.

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