Brent crude oil futures extended its recent decline toward $70 per barrel on Wednesday, pressured by prospects of increased Russian supply.
This follows President Putin’s agreement to halt attacks on Ukrainian energy sites while rejecting a 30-day ceasefire. The potential lifting of Russian sanctions added to concerns over a surplus, as the Organization of the Petroleum Exporting Countries (OPEC) and its allies plan to boost production next month.
Additional downside risks stem from shifting global trade, which could dampen growth and weaken consumption. Signs of slowing demand emerged after industry data showed a larger-than-expected build in crude stocks last week.
However, heightened violence in the Middle East, threatening supply disruptions from key oil-producing regions, helped cushion some losses.
WTI crude oil futures extended their recent decline toward $66 per barrel, pressured by prospects of increased Russian supply.
The price of the OPEC basket of twelve crudes stood at $72,98 a barrel, compared with $73,34 the previous day, according to OPEC Secretariat calculations.
The drop was after Brent crude oil on Tuesday advanced slightly in its intraday trading as it positioned itself to attack the key resistance level at $71.35.
The gains were supported by instability in the Middle East, as well as China’s plans for more economic stimulus, though global growth concerns, U.S. tariffs and uncertainty over Ukraine ceasefire talks curbed gains.
READ ALSO: Oil Gains Slightly On Mideast Risks, China Stimulus, Uncertain Ukraine Talks
On Monday, Chinese economic data showed that retail sales growth quickened in January-February, giving investors reasons for optimism, although factory output fell and the urban jobless rate reached its highest in two years.
Crude oil throughput in China, the world’s biggest crude importer, rose 2.1% in January and February from a year earlier, supported by a new refinery and Lunar New Year holiday travel, official data showed on Monday.
Oil prices gained support from President Donald Trump’s vow to continue the U.S. assault on Yemen’s Houthis unless they end their attacks on ships in the Red Sea. Trump said on Monday he would hold Iran responsible for any attacks carried out by the Houthi group that it backs in Yemen.
