Oil prices extended their decline for a fourth day, sinking to four-month lows as oversupply concerns overshadowed geopolitical risks.
Brent crude settled at $64.11, down $1.24 (-1.9%), its lowest since June 2. U.S. WTI finished at $60.48, down $1.30 (-2.1%), its weakest since May 30.
Traders remain focused on the OPEC+ meeting this weekend, where the group could approve an additional November production hike of up to 500,000 bpd, triple October’s increase, as Saudi Arabia pushes to reclaim market share. Analysts warned that the move could accelerate a global surplus, especially with U.S. crude, gasoline, and distillate inventories all rising last week.
Bearish sentiment has been reinforced by downward revisions to global oil demand forecasts, with PVM noting a 150,000 bpd downgrade since January. Banks like Macquarie have also warned of a possible “super glut.”
Limiting losses, the U.S. confirmed it will provide Ukraine with intelligence for long-range strikes on Russian energy infrastructure—raising the risk of supply disruption. Meanwhile, Chinese stockpiling continues to lend modest support.