Brent crude futures settled down $1.05, or 1.42%, to $72.70 a barrel and U.S. WTI crude futures settled down $1.14, or 1.62%, at $69.20
Crude futures dropped by more than $1 a barrel on Wednesday in see-saw trading, with traders concerned about demand in coming months as crude producers offered mixed signals about supply increases.
Brent crude futures settled down $1.05, or 1.42%, to $72.70 a barrel. U.S. WTI crude futures settled down $1.14, or 1.62%, at $69.20.
During the session, both benchmarks wavered from $1 down to $1 up following news OPEC+ was discussing delaying a possible output increase because Libyan production is expected to rise.
In a broader sell-off, Brent crude futures skidded as much as 11%, or around $9, in a little over a week, reaching a low of $72.63 on Wednesday.
Lacklustre data from the U.S. and China reinforced expectations of a weaker global economy and oil demand, helping set off a wider decline in world markets.
It is definitely worries about a slowdown in manufacturing, according to Phil Flynn, senior analyst at Price Futures Group. That is the only negative we are seeing.
Meanwhile, traders believed there could be an end in sight to a dispute halting Libyan oil exports, which would bring more crude supply back online.
This sell off moved the attention to what OPEC+’s response would be, which last week looked set to start the planned output hikes in October, wrote Alex Hodes, analyst at StoneX. The group is now concerned about pricing and sources say that a delay to the hikes is now being discussed.
Recent data releases fed concerns of weak demand from China, the world’s largest crude importer, and U.S. consumption taking a hit.
On Saturday, Chinese data showed manufacturing activity dipped to a six-month low in August, when growth in new home prices slowed.
