LONDON: Oil prices extended losses on Thursday, falling by more than 2 per cent to their lowest point since early August, as worries about weaker US gasoline demand and a sluggish economic recovery from the COVID-19 pandemic dented sentiment.
Brent crude fell $1, or 2.25 per cent, to $43.43 a barrel by 1118 GMT. US West Texas Intermediate (WTI) crude futures were down $1.02, or 2.5 per cent, at $40.49 a barrel.
Both benchmarks fell more than 2 per cent on Wednesday.
US gasoline demand last week fell to 8.78 million barrels per day (bpd) from 9.16 million bpd a week earlier, Energy Information Administration (EIA) data showed on Wednesday, with consumption of other oil products also falling.
“It is the latest data set that possibly caught the eye of those who ran long positions, and not even another record close in the US stock market was able to change the direction of the herd,” Tamas Varga of oil brokerage PVM said.
Other data, such as US private employers hiring fewer workers than expected for a second straight month in August, also fed fears that economic recovery was lagging.
Oil markets, however, drew some support from Iraq’s denial it was seeking exemption from OPEC+ oil cuts during the first quarter of next year.
OPEC’s second largest producer also said it may seek to extend by two months until the end of November the period for making additional compensation cuts under the OPEC+ deal.
Analysts warn that the upcoming refinery maintenance and the end of the summer driving season would also limit crude demand.
— Reuters
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