Oil prices retreat on bets that crude supply growth will exceed demand
Oil prices fell on Wednesday for a third day on growing expectations that supply growth will outpace demand growth next year, even though the omicron coronavirus variant is not seen curbing mobility as sharply as earlier Covid-19 variants.
U.S. West Texas Intermediate (WTI) crude futures fell 52 cents, or 0.7%, to $70.21 a barrel at 0215 GMT, after losing 56 cents in the previous session.
Brent crude futures fell 43 cents, or 0.6%, to $73.27 a barrel, after losing 69 cents on Tuesday.
The International Energy Agency (IEA) on Tuesday said a surge in Covid-19 cases with the emergence of the Omicron variant will dent global demand for oil at the same time that crude output is set to increase, especially in the United States, with supply set to exceed demand through at least the end of next year.
In contrast, the Organization of the Petroleum Exporting (OPEC) on Monday raised its world oil demand forecast for the first quarter of 2022.
Reference: CNBC
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