Oil Drops on Oversupply and Demand Concerns

WTI crude oil futures dropped over 2% to settle at $62.4 per barrel on Thursday, snapping a three-day rally as demand concerns in the US and fears of global oversupply outweighed geopolitical risks in the Middle East and Ukraine.

The International Energy Agency flagged stronger-than-expected supply growth, driven by higher OPEC+ output, while the group confirmed plans to lift production from October.

Adding to the pressure, US crude inventories unexpectedly rose by 3.9 million barrels last week.

Saudi exports to China are also set to climb to 1.65 million barrels per day in October, intensifying supply concerns, though questions remain about the sustainability of China’s buying pace.