Oil prices dropped 2% on Thursday, extending loss from the previous season by a total of nearly 6% amid concerns about falling fuel demand that overwhelmed an OPEC+ decision to maintain its temporary output cut to keep supply tight.
The international benchmark Brent crude fell $1.74 or 2.03% to $84.07 a barrel, while the U.S. West Texas Intermediate dropped $1.91 or 2.3% to $82.31 per barrel.
Oil price plunged about $10 a barrel in about a week, derailing its path to $100 level.
On Wednesday, crude oil prices plunged sharply by 5% as US data showed the market had weak demand for oil. The decline on Wednesday was the largest one-day drop since August 2022.
The US Energy Information Administration (EIA) reported on Wednesday that domestic stocks of petrol rose by 6.5 million barrels last week in contrast to only a drop of 2.2 million barrels in stocks of crude.
An analyst from JPMorgan noted that demand restraint from rising oil prices is once again becoming visible.
The U.S. dollar continued to ease, but remained near an 11-month high, making crude more expensive for foreign buyers.
Meanwhile, the Federal Reserve could maintain interest rates at a higher level for longer. The current rate is 5.25-5.50%.
