Oil headed for third weekly loss as Saudi Arabia warns of oversupply
The drop is also a spillover from the global equities rout, says Fitch Solutions
Tokyo — Oil prices fell on Friday and were heading for a third weekly loss. They were pulled down as Saudi Arabia’s Opec governor said the market may become oversupplied soon, and after a slump in global equities clouded the outlook for demand. Brent crude futures were down 51c or 0.7% at $76.38 a barrel by 3.31am GMT. The global benchmark is on course for a weekly loss of more than 4%. US crude was down 64c or 1% at $66.68 a barrel. The US benchmark is set for a 3.5% loss this week. “Bearish sentiment could force a re-test of support in the low $70 range,” Fitch Solutions said in a note on Friday. Saudi Arabia’s Opec governor said on Thursday that the oil market could face oversupply in the current quarter. “The market in the fourth quarter could be shifting towards an oversupply situation as evidenced by rising inventories over the past few weeks,” Adeeb Al-Aama told Reuters. Saudi Arabian energy minister Khalid al-Falih said there could be a need for intervention to reduce oil st...
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