Oil Prices Ease After Seven-Week High
Oil prices slipped in Asian trading on Thursday, pulling back from the previous session’s seven-week peak. Investors booked profits amid expectations of weaker winter demand and the restart of Kurdish oil supplies.
Brent crude futures fell 19 cents, or 0.3%, to $69.12 a barrel by 06:37 GMT. U.S. West Texas Intermediate (WTI) crude futures dropped 22 cents, or 0.3%, to $64.77 a barrel.
Both benchmarks had climbed 2.5% on Wednesday, reaching their highest since August 1. Gains were supported by a surprise fall in U.S. crude inventories and concerns that attacks on Russia’s energy infrastructure could disrupt supply.
Analysts Expect Moderation Ahead
“Oil prices are hovering above our expectations,” said Suvro Sarkar, energy sector lead at DBS Bank. He added that profit-taking at current levels could push prices lower as markets move into the slower winter demand season.
Bearish expectations also stemmed from supply concerns, with Iraq and Kurdistan expected to resume exports soon.
“The return of Kurdish supplies adds back fears of oversupply, fueling the pullback from seven-week highs,” said Priyanka Sachdeva, senior analyst at Phillip Nova.
Supply Outlook and Demand Trends
Oil flows from Iraqi Kurdistan are expected to restart in the coming days, following a deal between eight oil companies, Iraq’s federal government, and the Kurdish regional authority.
Despite lingering concerns about Russian exports, Haitong Securities noted that recent weeks have not shown major supply–demand imbalances. Still, as peak demand season ends, oversupply risks are likely to grow.
Adding to demand worries, J.P. Morgan analysts said U.S. air passenger traffic in September rose just 0.2% from last year, a sharp slowdown compared to the 1% growth seen in the prior two months. U.S. gasoline demand has also started to ease, mirroring weaker travel activity.
