Oil Declines for Fifth Day as Supply Concerns Come to the Fore
Oil dropped for a fifth day on pace for the longest losing run since early August — on signs that global supplies are set to increase, potentially feeding a surplus in the fourth quarter and into 2026.
Global benchmark Brent fell toward $66 a barrel after slipping 2.8% over the previous four sessions, while West Texas Intermediate was about $62. Iraq may shortly resume exports via Kurdistan after a two-year halt over a payment dispute. That could see about 230,000 barrels a day return to international markets, according to people familiar with the matter.
Crude is on course for a narrow quarterly decline, as forecasts for a glut have offset lingering geopolitical concerns, including threats to flows from Russia. A rapid return of shuttered barrels by the Organization of the Petroleum Exporting Countries and its allies, as well as increased production from outside the group, have seen market watchers including the International Energy Agency warn that supplies are set to top demand by a record margin.
“Brent remains under pressure, a pattern we often see as soon as there is no fresh geopolitical news to trade on,” said Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management. “The Kurdistan-Iraqi agreement to restart the 230,000-barrel-per-day pipeline to Turkey may further add to the bearish sentiment.”
Canadian Prime Minister Mark Carney said he wanted to see Western allies ramp up pressure on President Vladimir Putin with secondary sanctions on countries working with Russia. That follows recent remarks from President Donald Trump, who has urged European countries to stop buying Russian energy, although the US has so far spared China — the biggest buyer of Moscow’s barrels — from additional tariffs.
Source: Bloomberg.com
