Oil falls on OPEC+ oversupply

Shafaq News / Oil fell more than 1% on Thursday after Reuters reported OPEC+ needed to address daily oversupply of more than 2 million barrels, and the number of U.S. unemployment benefit claims rose unexpectedly, signaling a slow economic recovery

Brent crude fell 47 cents, or 1 percent, to determine the settlement price at $ 44.90 a barrel, while West Texas Intermediate crude for September delivery closed 35 cents, or 0.8 percent, to $ 42.58 a barrel in its last trading days. The more active West Texas October delivery contract fell 29 cents, or 0.7 percent, to $ 42.82.

Oil prices have ranged from their current range since mid-June, with Brent trading between 40 and 46 dollars a barrel and West Texas between 37 and 43 dollars a barrel.

“The rebound in global economic activity which explained to some extent the firm oil price during May-June period has stalled … the macro environment for crude oil continues to show weakness,” said Georgi Slavov, head of global fundamental research at Marex Spectron.

OPEC+, said on Wednesday the pace of the oil market recovery appeared to be slower than anticipated with growing risks of a prolonged second wave of the pandemic.