The oil prices fall almost 2% on oversupply and weaker American demand

The oil prices fell under pressure on Thursday, put under concern about the softening of American demand and broad oversupply that threats threats to the output of conflicts in the middle and the Russian war in Ukraine.

Brent Raw Futures declined $ 1.13, or 1.7%, at $ 66.36 per barrel with 1319 GMT, while US West Texas Intermediaire Raw Futures $ 1.16 or 1.8%lost to $ 62.51.

“The oil prices are falling today in response to Bearish IEA -Kopoppen, which suggest a huge oversupply on the oil market next year,” said Commerzbank analyst Carsten Fritsch.

The International Energy Agency said in its monthly report that the world oil of the world oil will rise faster than expected this year on OPEC+ increasing output further.

The OPEC report published after the IEAs preserved non-OPEC demand and supply predictions for the year unchanged, stating a steady demand.

The organization of petroleum -exhibiting countries and allies, a group that is jointly known as OPEC+, decided to increase production on Sunday from October. The market was torn apart between the perceived shortage of delivery due to an increase in tensions in the middle and Ukraine and the actual oversupply of higher OPEC+ production and swelling shares, said PVM Oil Associates analyst Tamas Varga. The export of crude oil from Saudi Aarabia to China will pop up in October, told Reuters trade sources on Thursday, where Aramco shipping around 1.65 million barrels per day in October compared to 1.43 million BPD assigned in September.

In the US, rough stocks with 3.9 million barrels in the week until 5 September, the Energy Information Administration said, against the expectations of a draw of 1 million barrels.

The market also wondered how long China was able to absorb barrels and keep the OECD inventories low, said UBS analyst Giovanni Staunovo, adding that investors are also looking forward to further sanctions that affect the Russian oil.

The American energy secretary Chris Wright and EU energy commissioner Dan Jorgensen discussed the efforts to limit the Russian energy trade in Brussels, where Jorgensen said that the planned deadlines of the block were ambitious, but there is a need to accelerate the process.

In 2026, the total oil market can register a substantial surplus, said Ole Hvalbye at SEB Research, adding that the question seems to keep and possibly absorb the increased OPEC+ production.