Crude oil futures ended lower on Thursday, extending losses to a third straight session, weighed down by a downward revision in OPEC’s oil demand forecast and speculation that the U.S. may ease sanctions on Iran.
West Texas Intermediate Crude oil futures for October ended down $0.66, or about 1.2%, at $55.09 a barrel.
On Wednesday, WTI Crude oil futures for October ended down $1.65, or about 2.9%, at $55.75 a barrel.
OPEC, in its monthly report, said global oil market would be in surplus next year and that oil demand will expand by 1.08 million barrels per day, down 60,000 per day from previous estimate due to an economic slowdown.
Traders were also weighing the possibility of the U.S. relaxing sanctions on Iran in the coming weeks.
The meeting of OPEC members in Abu Dhabi ended without the group deciding on any deeper output cut.
Saudi Arabia’s new energy minister Prince Abdulaziz bin Salman said deeper cuts would not be decided upon before a meeting of the Organization of the Petroleum Exporting Countries planned for December.
However, the OPEC meeting ended with the members pledging to clean up compliance to lower collective output by several hundred thousand barrels per day over a two-month period.
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