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Oil prices drop dramatically on oversupply fears and U.S. demand risks
['Williams Agyapong']
The Ghana Report
Crude oil futures posted a sharp weekly decline, pressured by a renewed wave of supply-side concerns and deteriorating demand outlooks.
After reaching a seven-week high early in the week, WTI crude retreated aggressively, driven by speculation of an OPEC+ production hike, the return of Kurdish exports, and signs of softening global consumption.
The central driver behind this week’s sell-off was the resurgence of supply concerns, primarily linked to OPEC+ output plans.
Market chatter early in the week suggested the producer group was preparing for a modest production increase of 137,000 barrels per day (bpd).
The idea of a half-million-barrel increase has forced many speculative longs to reassess risk, contributing to this week’s accelerated pullback.