Oil Prices Extend Declines on Thursday Morning

Global oil prices extended their declines on Thursday morning as OPEC+ standoff amid supply uncertainty weigh on oil outlook.

Oil global benchmark, Brent crude oil, dropped 43 cents or 0.6 percent to $73 a barrel at around 10 am Nigerian time.

The U.S. West Texas Intermediate oil sheds 51 cents or 0.7 percent to trade at $71.69 a barrel.

Since Saudi Arabia and the United Arab Emirates failed to agree on production cuts and extensions on Monday, the Brent crude oil has fallen by about 5.3 percent.

Crude oil investors are worried that a disagreement between the two oil giants could bolster oil prices and drag on current bullish run post-Covid-19.

“Bullishness over prospects of a tighter market gave way to concerns over what a non-unified OPEC could mean for further production policies,” ANZ analysts said in a note on Thursday, adding that a lack of new supply agreement to feed a quickly recovering world economy is creating uncertainty.