Oil prices fall amid supply glut concerns
Oil prices fell as concerns about oversupply overshadowed the possibility of a retaliatory Israeli strike on Iran.
WTI crude fell about 1% to settle near $70 a barrel, after earlier rising 2.2%. Global benchmark Brent crude settled near $74. Time differences point to a supply glut in the market, with the gap between the two nearest WTI contracts narrowing to 34 cents a barrel. That’s down from $1.79 in August.
“With no new geopolitical developments, the easiest path for oil appears to be down,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Group. “Demand concerns are tightening spreads, while potential buyers are hesitant to buy due to the generally bearish outlook for 2025.”
