LONDON (Reuters) – Oil prices fell by around $1, extending losses from yesterday’s session in which they hit four-month lows, with investors worried about rising supply later in the year after the signs of weaker demand in the United States.
At around 10.50am, futures were down 92 cents, or 1.2%, at $77.44 a barrel. Yesterday Brent closed below $80 for the first time since February 7, after falling more than 3%.
U.S. West Texas Intermediate crude futures lost $1.03, or 1.4%, to $73.19 a barrel. Yesterday the WTI fell by 3.6% and then settled close to four-month lows.
The Organization of the Exporting Countries and its allies (OPEC+) decided on Sunday to extend most oil production cuts until 2025, but opened up the possibility for eight members to remove voluntary cuts starting in October.
The increase in supply by OPEC+ could flow into a market where demand has already shown signs of weakness.
US manufacturing activity slowed for a second straight month in May, while construction spending in April fell unexpectedly for a second month due to a decline in nonresidential activity, both of which could translate into a weakening of demand for oil and fuel.
(Translated by Chiara Scarciglia, editing by Claudia Cristoferi)
