Investors concerned about a possible weakening of U.S. demand and oversupply backed off Thursday, despite the threats to output from the Middle East conflict and the war in Ukraine. As a result, prices for crude oil fell 2% for the day.
Reuters reported the International Energy Agency said in its monthly report that world oil supply will rise more rapidly than expected this year due to planned output increases by OPEC+, the Organization of the Petroleum Exporting Countries and allies like Russia.
West Texas Intermediate, the U.S. benchmark, fell $1.30 or 2.0% to close at $62.37 a barrel on the New York Mercantile Exchange.
Brent crude, the global standard, finished down $1.12 or 1.7% at $66.37 per barrel.
Natural gas prices settled nearly 4% lower for the day. They finished at $2.918 per MMBtu, down $0.111 for a 3.66% fall.