BEIJING/SINGAPORE: Oil prices extended their decline on Thursday to near levels last seen before the start of the Iran war, as rising supply expectations from the Middle East outweighed demand concerns.
Prompt-month Brent crude futures for August delivery fell $1.22, or 1.65 percent, to $72.52 a barrel as of 06:37 a.m. Saudi time, while US West Texas Intermediate lost $1.02, or 1.45 percent, to $69.32 a barrel.
Both contracts hit their lowest since Feb. 27.
August Brent was trading lower than September, which was priced at $73.59, signalling ample short-term supply.
“The speed of this decline has caught plenty off guard as markets price in a much faster return of Middle Eastern barrels than most had anticipated just a fortnight ago,” IG analyst Tony Sycamore said in a note.
